business consulting globalex

Mutual funds are an appropriate investment for individuals desiring to contribute incremental, relatively small sums of money to a particular strategy. Most, although not all, mutual funds allow minimal initial investments - which makes them palatable for individual investors. They are commonly used in individual IRAs and company sponsored 401k, 403b and profit sharing plans. SG Long & Company offers access to thousands of mutual fund strategies - some of which are briefly summarized below.

Stock Mutual Funds offer investors access to stock markets around the world via a wide variety of different strategies. A mutual fund may focus on smaller (or 'small-cap') companies or focus on much larger companies. One fund may focus on exclusively companies based in the United States while another only owns stocks from Chinese based companies. As you can imagine, because of this essentially endless array of options - choosing between stock mutual funds can seem a little overwhelming. That is where your SG Long & Company Financial Advisor can prove to be a valuable resource. They are equipped with the analytical tools necessary to help you make a decision based on your personal risk tolerance level.

Fixed Income Mutual Funds offer investors access to bond portfolios that focus on a variety of different strategies. Traditional corporate bonds are usually issued in denominations of approximately $1000, rendering it difficult to assemble a diversified bond portfolio with limited funds. Fixed Income Mutual funds allow you to pool your money with other investors in order to assemble a diversified portfolio that you can earn proportionate income from. Fixed Income mutual funds focus on a variety of different risk levels. One Fixed Income Mutual Fund may build a very conservative portfolio while another my attempt to increase returns to investors by taking more speculative positions.

Balanced Mutual Funds essentially combine the two strategies in one mutual fund. A Balanced fund holds a portion of it's investors money in stocks and a portion in bonds (usually appx. 60%/40% respectively). Target Date Mutual Funds adjust this percentage mix to being more heavily invested in fixed income as you get closer to retirement. All Target Date funds are not the same! For example, the percentage allocation targets may differ widely from one 2015 Target Fund to the next. It is therefore very important to contact your Financial Advisor to make sure you are in an appropriate strategy for your particular timeframe.

Alternative Mutual Funds are increasing in popularity as more investors choose to focus their financial planning objectives on socially relevant causes. For example, an investor who is concerned about environmental issues may invest in a mutual fund that only invests in Green companies. As these socially focused strategies continue to gain in popularity, there will be many more Alternative Mutual Funds for investors to choose from.

With so many options to choose from, it is important to work with a financial professional that is qualified to analyze the mutual fund in question and determine if it suitable for you as an individual. The Financial Advisors @ SG Long & Company are ready to answer any and all questions you may have about mutual funds that you already own or are considering buying.