Mutual funds can potentially allow investors to easily and inexpensively diversify their portfolios. With more than 14,000 mutual funds available, investors have many choices to pursue their unique financial goals.
Mutual Fund Features
Diversify. Mutual funds potentially allow investors to hold dozens of securities in a single mutual fund.
Easy access. Mutual funds can be purchased through a brokerage firm like Scottrade or, in some cases, by buying them directly from a mutual fund company.
Core strategy. Investors can use mutual funds to build out the core of their portfolios.
Pricing. The purchase price is based on the value of the securities held by the fund. By comparison, stocks or ETFs can sometimes sell at a premium or discount to their underlying value.
Choices. Mutual funds exist for virtually any type of asset class (like stocks or bonds). You can buy funds with active managers trying to beat market returns, or funds that simply try to match a benchmark like the S&P 500.
Learn More about Mutual Funds, including everything from the basics to investing and trading strategies.
*The Mutual Funds selected by Zacks for the Select List have been derived from a universe of Mutual Funds maintained by Zacks for its own proprietary research products and services. Zacks is not affiliated with Scottrade. None of the information provided should be considered a recommendation or solicitation to invest in, or liquidate, a particular security or type of security. Investors should fully research any security before making an investment decision.
Keep in mind that while diversification may help spread risk it does not assure a profit, or protect against loss, in a down market.