Often the easiest way to begin investing, a mutual fund investment can provide investors with a low-risk means of entering the investment market. Essentially, mutual funds are a pool of investment money provided by a group of individuals, companies or organizations that is then invested into one or more funds.
Who manages the funds?
The investment management is handled by a fund manager. There are several types of fund managers, such as a long-term growth manager and fixed-income manager, each of which has a different aim and goal. For long-term growth managers, the goal is to yield the highest possible yearly return, while for a fixed-income manager, the goal is to keep risk low.
What types of funds are there?
A mutual fund investment can fall into several different categories. A closed-end fund has a limited number of shares that are traded on the open market. By contrast, an open-end fund does not have a limited number of shares and simply issues new shares each time there is an interested shareholder willing to make an investment.
How do I know which type of mutual fund to invest in?
Since all circumstances are different, it would be impossible to determine which type of mutual fund would work best for you without first conducting a throughout review of your current financial situation and discussing your financial goals. At Graham Capital Advisors, we offer potential investors recommendations on the best funds in which to invest, and our team of experienced, skilled financial managers will be happy to help you determine which investment opportunities will best meet your goals.
We are glad to schedule complimentary consultations for potential investors from Tampa, Clearwater, St. Petersburg, Carrollwood, Palm Harbor and the neighboring areas, so if you are interested in learning more about mutual fund investment opportunities, contact Graham Capital Advisors today.