Mutual Funds

A mutual fund is a professionally managed type of collective investment that pools money from many investors and invests typically in investment securities (stocks, bonds, etc.). Mutual funds will have a fund manager that trades the fund's investments in accordance with the mutual fund's investment objective. Individual mutual funds are usually part of a large company known as a mutual fund "family," such as Fidelity, Oppenheimer, or Vanguard. Each family typically has lots of diffident mutual fund options to choose from.

It is important to understand the different investments in which the mutual fund invests to help you assess their investment risk. Rather than promoting our own mutual funds, Kensington Capital will make diversifying your portfolio easy. Get one-stop access to more than 4,500 mutual funds, including most major fund families. Our variety of mutual funds covers a wide range of objectives and goals.

4 points to know prior to investing in Mutual funds

Investors cannot purchase the shares of the mutual fund from other investors on a secondary market, such as the New York Stock Exchange or Nasdaq Stock Market. The price that investors pay for mutual funds shares is the fund’s approximate net asset value (NAV) per share plus any fees that the fund may charge at purchase, such as sales charges, also known as sales loads.

Mutual funds are "redeemable." This means that when mutual fund investors want to sell their mutual funds, they sell them back to the fund, or to a broker acting for the fund, at their current NAV per share, minus any fees the fund may charge, such as deferred sales loads or redemption fees.

Mutual funds generally sell their shares on a continuous basis, although some funds will stop selling when, for example, they reach a certain level of assets under management.

The investment portfolios of mutual funds typically are managed by separate entities known as "investment advisers" that are registered with the SEC. In addition, mutual funds themselves are registered with the SEC and subject to SEC regulation.

Mutual Funds Disclaimer:

Investors should consider the investment objectives, risks, charges, and expenses of mutual funds carefully before investing. A prospectus contains this and other information about the mutual fund and is available through your broker. The prospectus should be read carefully before investing. Fund share prices will fluctuate, so investors could lose money if they sell shares when prices have fallen. Diversification does not ensure a profit or protect against a loss in a declining market.