Through your brokerage account
with us, you have access to one of the largest selections of
mutual funds in the business. When properly selected, mutual
funds combine professional management, ease of purchase and
redemption, simple record keeping, and risk reduction into a
vehicle that is easy to buy or sell. You could go to each mutual
fund company and open an account, but we offer the convenience
of letting you hold many funds from different families in one
account while getting an easy to understand central record of
you holdings.
Categories of Mutual Funds
There are three basic types of funds available to you through
your account.
- Load Funds - This is what the brokerage industry
calls funds that have a stated sales charge. When an amount
is stated as a load, it refers to either the maximum initial
or deferred sales charge for that fund. Front-end loads
(also called initial loads) this figure is expressed as
a percentage of the initial investment and is incurred upon
purchase of fund shares. Deferred sales charges (also called
back-end loads or contingent deferred sales charges) are
amounts charged based on the lesser of the initial or final
value of the shares sold.
- No-Load Funds - This type of fund charges no sales
or 12b-1 fees. There is a flat rate transaction fee charged
for buying or selling funds in this category.
- No Transaction Fee Funds - Funds in this category
have neither a sales charge (load) nor do we charge a transaction
fee for these funds. Fees in this category typically have
a 12b-1 fee assessed that covers the fund expenses.
Are mutual funds a “good fit”
with your Investment Character?
As discussed in the
section
on features, mutual funds offer benefits such as diversification
and professional management. Additionally, the long term investor
(with at least a five to ten year horizon) has the opportunity
to participate in income and/or capital growth through mutual
funds which mirror their own investment objectives. Some of
the more popular general objectives can be found in the
section
on mutual fund types. Aggressive Growth: Aggressive growth
funds purchase shares of stock in smaller companies which have
a chance to grow at a faster pace than more “mature”
companies. Of course, there is also greater risk involved with
investing in less established companies (see Financial Principles:
Risk and Reward). Aggressive growth funds are usually recommended
for the investors who seek long term capital appreciation and
will not need access to that money for at least ten years.
Important Notice:
Performance data for the Mutal Fund Mall is provided
by Morningstar, Inc., an independent firm that tracks
the investment industry. Although gathered from reliable
resources, Morningstar cannot guarantee completeness
and accuracy. Fund information and data includes sales
charges or transaction fees and assume reinvestment
of dividends and capital gains at net asset value.
A free prospectus for mutual funds containing more complete
information, including management fees and other expenses,
in available upon request. unds are offered by prospectus
only. As with any investment, you should always carefully
read the prospectus and make sure you understand it
fully. Investigate before you invest is always good
investment practice.
Mesirow Financial provides recordkeeping and shareholder
services for shares purchased and/or held in accounts.
BestVest Investments, Ltd. receives remuneration from
participating fund companies for NTF funds.
Returns will vary and shares may be worth more or less
than their original cost when sold. This and other information
on mutual funds is provided for general informational
purposes only. Also remember that market volatility
can significantly impact short-term performance. Results
of an investment made today may differ substantially
from the historical performance shown.
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