Mutual Funds
Capital Ingenuity can help you understand the vast world mutual funds.

A mutual fund is a fund operated by an investment company that pools the funds of multiple investors together for collective diversified investment. In return for their investment, investors receive shares which represent their portion of the total investment pool.

While there are many different kinds of mutual funds, many of them offer some key benefits to investors including, but certainly not limited to, low cost diversification, professional management, liquidity, low initial investment amounts, and convenience. Because of their many advantages, mutual funds are often used to fund Individual Retirement Accounts (IRAs), 401(k) accounts, 403(b)(7) accounts, and non-qualified investment accounts of both big and small investors.

Mutual funds can also have many disadvantages including, but not limited to, the possibility of over diversification, management fees, marketing and administrative fees, underperformance of the market, restriction of certain very valuable investment strategies, and various political factors. It is important to understand the downside of investing in mutual funds before making an investment in them.

At Capital Ingenuity, we help our clients understand the complexities of mutual fund investing. Additionally, we teach variety of asset allocation strategies which you can use to build a portfolio for retirement, college savings, or personal accounts.