Features

A mutual fund is an investment company that pools money from shareholders and is professionally managed in a portfolio of securities. The four basic types of mutual funds are: stock (also called equity), money market, bond, and hybrid.

Benefits

Mutual funds offer a number of advantages including:

• Diversification
• Professional money management
• Cost efficiency
• Liquidity
  

How they fit in a portfolio

Mutual funds in the right scenario can play an important role in the performance and diversification of your overall portfolio. You should talk to one of our financial advisors to determine if an investment in mutual funds is right for you.

Costs involved with buying mutual funds

There are several fees that you should be aware of before investing in any mutual fund. These fees include management fees which are charged to your account annually and cover the costs of managing the investment portfolio. There are also fees that are paid to your financial advisor for managing your account. You as the investor have the ability to decide how you want your advisor paid for the services they render. This is achieved through your selection of share class on the investment application. Below are some brief explanations of various types of share classes. In addition to your share class selections you should be aware that there are reductions in commission costs that you pay based on the dollar amount you are investing. These are called break points and you should be sure to discuss these with your financial advisor.

A Share - A share is a fund share that carries a front-end load. Class A fund has a lower management expense ratio compared to other classes within the same family.

B Share - B share is a fund share that carries a back-end load. Class B fund will generally have higher management expense ratio compared to front-end load funds. Fund companies attempt to increase their profits while the rear load is effective because it will normally decrease in value with time until no load is charged.

C Share - C share has a constant load structure throughout the life of the fund that is paid annually. Class C has a higher management expense ratio because of its lower load fee when compared to other funds with different load structures in the same family.

There are other classes that may fit your investment needs. Please speak with your financial advisor to see which class best suits your investments.

Equinox Securities, Inc….It’s All About Balance.