For mutual fund investors, taxes are inevitable. Even if you’re a long-term buy...
Welcome to MutualFunds.com
Please help us personalize your experience and select the one that best describes you.
Your personalized experience is almost ready.
Check your email and confirm your subscription to complete your personalized experience.
Thank you for your submission
We hope you enjoy your experience
Fixed income news, reports, video and more.
Municipal bonds news, reports, video and more.
Practice management news, reports, video and more.
Portfolio management news, reports, video and more.
Retirement news, reports, video and more.
Learn from industry thought leaders and expert market participants.
Find the latest content and information here about the 2019 Charles Schwab Impact Conference.
18 Most Popular Mutual Fund Categories
View All Categories
15 Most Popular Fund Companies
View All Fund Companies
15 Most Popular Fund Company Quick Screens
View All Fund Company Quick Screens
Receive email updates about fund flows, news, upcoming CE accredited webcasts from industry thought leaders and more.
Content focused on helping financial advisors build successful client relationships and grow their business.
Content geared towards helping financial advisors build better client portfolios.
Get insights on the industry trends and investment news from leading fund managers and experts.
Be sure to also read the 7 Questions to Ask When Buying a Mutual Fund.
Conservative Portfolio: The goal is to protect the principal value. A conservative portfolio is for those investors with a short time horizon, and a low level of risk tolerance. Ideal for people in retirement or close to retiring.
Moderately Conservative Portfolio: To protect the principal value while adding a bit more risk. For those investors with a short time horizon and a low level of risk tolerance.
Moderately Aggressive Portfolio: Also known as “Balanced Portfolios,” these are equally split between equities and fixed income. Great for investors with a medium risk tolerance and a time horizon longer than five years.
• 35%-40% Fixed Income Securities
• 50%-55% Equities
• 5%-10% Cash and Equivalents
Aggressive Portfolio: Mainly consist of equities to achieve long-term growth of capital. Meant for those with a high-risk tolerance and long time horizon.
Very Aggressive Portfolio: The main goal is aggressive capital growth over a long time horizon. This asset allocation would be for those with a high-risk tolerance and a long time horizon such as young adults.
Be sure to read about the 10 Biggest Mutual Fund Investing Myths Debunked.
Historically, stocks have had the greatest risk but also the greatest returns among the asset classes. In the short run, stocks can be very volatile, and during recessions take the biggest hit, as seen during the Great Recession when the Dow dropped 54% hitting 6,547 in March 2008. However, when held over the long term, with the benefits of diversification, stocks have outperformed every other asset class. Within stocks there are subclasses such as large-cap stocks, small-cap, international and emerging markets.
Bonds are generally less risky than stocks, and less volatile, but their returns are also smaller. Typically, as an investor gets older, his or her portfolio might be geared towards having a heavier focus on bonds rather than stocks to reduce the risk of the portfolio. Within bonds there are also junk bonds, or high-yield bonds, that give higher returns, but are also riskier.
This includes holding cash or cash equivalents such as savings deposits, Treasury bills, and money market funds. This offers the lowest returns of any of the asset classes, but also has the lowest risk with only inflation to take into consideration.
The benefits of real estate include building equity and price appreciation, along with being an inflation hedge; rents received from tenants tend to rise with inflation. Further, if it’s a principal residence, any capital gains are tax-free. As an alternative to owning the hard asset, investors may also be attracted to investing in real estate investment trusts (REITs), which are exchange traded investment vehicles that give exposure to real estate with the ease and convenience of buying and selling on a stock exchange.
Commodities along with real estate are “real assets” unlike stocks and bonds that are “financial assets.” Commodities therefore act differently than stocks or bonds and are a lot more volatile. They can be a good asset class for diversification and act as an inflation hedge, but investors should be prepared for wild swings dependent on supply and demand of the given commodity.