If you’re looking for a professionally run, diversified investment vehicle, a mutual fund through Modern Woodmen may be the right choice for you. A mutual fund is a collection of stocks, bonds or other securities purchased by a pool of individual investors and managed by a professional investment company. When investing in a mutual fund, your dollars are pooled with the money of other investors and the sum is then used to build or expand the fund’s investment portfolio.
Your share in a mutual fund represents one piece of all the fund’s holdings, which are usually comprised of many securities. As the value of the securities in the fund fluctuates, so does the fund’s share value, although the volatility of mutual funds is generally less than that of the individual securities that comprise them.
When you diversify, you spread money among a number of investments, which helps reduce your overall risk. By purchasing many different securities, mutual funds provide a level of diversification that would be difficult for most investors to match if they bought and sold securities themselves.
Mutual funds are run by professional money managers, who base their transactions on extensive and ongoing research, freeing you from having to make decisions you may not be prepared to make.
Dividends and capital gains
Because mutual fund shares can appreciate in price, shareholders may periodically receive dividend and capital gain distributions.
Some mutual funds can offer outstanding growth potential. Over the long run, many funds allow for the possibility of returns superior to those of traditional savings products.
Mutual funds are easy to purchase, and fund shares can be redeemed any day the New York Stock Exchange is open. Shareholders can also reinvest their dividends and capital gains at no cost and can usually move portions of their investments from one fund to another within the same fund family without incurring additional charges.
Mutual Fund choices with Modern Woodmen
Modern Woodmen has direct relationships with more than 70 mutual fund companies. To learn more about mutual funds, product availability and how mutual funds may fit into your overall financial portfolio, contact your local Modern Woodmen representative or call our trading desk toll-free at 1-866-790-7092.
Diversification does not assure a profit and is not a guarantee against loss.
Securities offered through MWA Financial Services Inc., a wholly owned subsidiary of Modern Woodmen of America, 1701 1st Avenue, Rock Island, IL 61201, 309-558-3100. Member: , . Products are available in most states. Individual representatives may not be licensed to sell all products.
Consider the investment objectives, risks, and charges and expenses of the investment company carefully before investing. Investments in mutual funds are subject to market risks, including the potential loss of principal. For this and other information about the investment company, obtain a prospectus from your Modern Woodmen representative. Read it carefully before you invest or pay money.