Mutual Funds

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Mutual Funds
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Goal

• Diversification
• Professional Money Management
• Easy
• Time and Energy Saver
• Higher returns than if you do it yourself

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Structure

• Money from individuals is pooled by a fund
  management company (Vanguard / Fidelity).
• Fund Manager (Advisor) buys and sells stocks or
  bonds with the pooled funds.
• Individual investors benefit from diversification
  with little investment.

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Key Metrics

• Net Asset Value (NAV)
• A per share measurement of the total value of
  the assets held by the mutual fund
• Performance
• Percentage gain in fund value over a specified
  time period (annually, quarterly, etc.)

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Fees

• Load (Sales fees)
• 12(b)-1 fees (marketing fees)
• Management fees
• www.morningstar.com

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Taxes

• Till death do us part.

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Mutual Funds Categories

• Growth
• Aggressive Growth
• Value
• Income
• Equity-Income
• Bond
• Asset Allocation

• Balanced
• Growth and Income
• Sector
• Index
• Conscience (Socially Responsible

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If You Cant Beat em Join em

• Index funds historically out-perform
  actively-managed mutual funds
• Lower fees
• Lower taxes
• More sleep at night

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Tools

• Morningstar (the king)
• Matching funds to your objectives
• Portfolios constructed entirely with funds
• Diversification by buying funds that balance each
  other

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Lets Take a Closer Look

• www.fidelity.com
• www.janus.com