MUTUAL FUNDS Money management made simple with mutual funds

Mutual funds allow you to invest your money across a variety of stocks, bonds, and other options to help manage risk, which is an investment strategy known as diversification. When you invest in a mutual fund, you buy shares in a collection of investments that are overseen by professional money managers. Each mutual fund has its own specific investing strategy with its own risks and rewards. Connect with a financial services professional for guidance on which funds align with your needs, goals, and risk tolerance.

The returns you receive will depend on the types of funds you choose and how they perform in the market. A dedicated professional can help you select the right funds and provide ongoing guidance to help you manage risk while seeking to grow your investment.

While all investments carry risk, most mutual funds also help manage risk by spreading your money across a variety of investments and securities (diversification). If one holding fluctuates in value, it does not have a drastic effect on the overall value of your portfolio.

Mutual funds are taxable when held in non-retirement accounts. They are not taxable when held in retirement accounts or individual retirement agreements (IRAs). Some types of mutual funds can also be taxed at lower rates. A dedicated professional can help you choose the right funds for you and estimate potential taxes.

In addition to mutual funds from a range of well-known firms, we offer New York Life Investments Funds, which are exclusively managed by New York Life Investment Management LLC, a subsidiary of New York Life Insurance Company. They’re available in many of the same investment platforms as other mutual funds and offer a wide range of options for creating a diverse investment portfolio. A dedicated professional can help you evaluate your needs and provide guidance on choosing the right mutual fun ds for your specific goals.

All investments carry some level of risk, and some mutual funds are inherently riskier than others. However, they’re generally considered less risky for small investors than individual stocks, given that you’re able to diversify your portfolio more easily with mutual funds. That means your portfolio is at less risk of big swings if one or two of your stocks perform poorly.

Both ETFs and mutual funds are managed investment funds that offer diversification. The key difference is how they’re traded. ETFs trade like individual stocks during the day at market prices. Mutual funds trade only once per day at the closing price and can be bought in fractional shares. Both can include a range of investments like sector-specific stocks, high-growth companies, or indexes like the S&P 500.