Straight mutual fund investments almost always pay smaller commissions than annuities of any kind. Breakpoint reductions in mutual fund commissions only serve to widen this gap. For example, a client that rolls a $500,000 401(k) into an IRA and invests the entire balance in, say, Franklin funds will only pay a collective sales charge of 2%.
The performance of a bond fund is determined by the performance of its underlying investments, but there are a few factors specific to bond funds that will affect its performance and your investment. As with all investments, remember that past performance is not a guarantee of future results.
A fund of funds (FOF) - also referred to as a multi-manager investment - is an investment strategy in which a fund invests in other types of funds. This strategy invests in a portfolio that contains different underlying assets instead of investing directly in bonds, stocks and other types of securities.
International and Global Funds Broaden your investment horizon with funds that go beyond the United States. International equity funds invest in the stocks of companies located outside the United States, while global equity funds can invest in any market around the world. These funds offer investors the possibility of broad diversification by ...
Funds are generally broken down into two categories, index funds and mutual funds. These terms are used colloquially to refer to the underlying objective of a fund. Index funds can be mutual funds or ETFs (exchange-traded funds) that track an index, such as the S&P 500 Index.
Options represent an agreement between a buyer and seller that provides the owner the right, but not obligation to buy/sell an underlying asset at a set price for a set period (or duration ) of time. The essence of an option is it lets an investor leverage the financial return (gain OR loss) for a much smaller upfront investment.
Retirement income funds are a specialized type of mutual fund. They automatically allocate your money across a diversified portfolio of stocks and bonds, often by owning a selection of other mutual funds. The investments are managed with the goal of producing monthly income which is distributed to you.
Saving for college is hard enough. You would think that state programs that sponsor so-called "529" savings plans would make it easier -- and cheaper -- for you. Unfortunately, some of the plans are bad deals because they are layered up with fund management fees and commissions.