Is your mutual fund suitable for you?

One of the most popular investment vehicles available today is a mutual fund.  Mutual funds are the vehicle of choice for many individual IRAs, 401(k)s, Profit Sharing Plans, Simple IRAs, as well as others.  More than likely, many of the readers have their own mutual fund or know of someone who has money invested in a mutual fund or portfolio of funds.


However, with more than 17,000 mutual funds available today, how do your know if yours is right for you?  First, it is critical that you determine the suitability of your particular fund with your risk tolerance, investment objectives and priorities.  It is important to take note of your investment experience and whether or not your current mutual fund(s) are out of character for you.  If you are having trouble sleeping at night and worry often about the risk of losing your investment capital, then an overly aggressive posture might not be suitable.  Upon recommending a fund to a client, investment advisors are required to provide them with a prospectus.  A prospectus spells out many of the details regarding that particular investment.  It is strongly recommended that you read it before you invest and discuss any questions with your advisor.


Mutual funds invest in varying types of investments.  Funds that buy only stocks or bonds or both are available for the picking.  Some funds buy international stocks, and there are others that buy only U.S. stocks.  Some look for small, medium and/or large company stocks with growth potential as an emphasis.  Others focus on stocks that pay dividends and/or preserve capital.  Mutual funds that look to buy various types of bonds are also available.  With more varieties available than there is time to discuss, be sure your selection is appropriate with your objectives.


Once you have chosen a fund and feel comfortable with your selection, it is important to be sure your objectives are being met.  Meeting with your investment advisor regularly to discuss your investment(s) and objectives is good practice and strongly recommended.  If material changes have occurred in your life, such as marriage, an addition to the family, etc., be sure to make your advisor aware of the changes.  It is also good practice to review your mutual fund statements once they arrive in the mail.  Looking for discrepancies and reviewing any changes can be beneficial in helping you to meet your investment objectives.


Mutual funds, as an investment vehicle, can be beneficial in helping you to meet your investment objectives.  However, taking the time to do your own homework and reading through the prospectus can not be emphasized enough.  Educating yourself about your selection and being aware of how it will help you to accomplish your goals can provide a great comfort level and less uncertainty.


Aaron Archambo is a financial advisor and the vice president of Archambo Financial Advisors, Inc.

Securities Offered Through Dominion Investor Services, Inc.  Member FINRA & SIPC.


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The full range of services offered at Archambo Financial Advisors are designed to meet your financial advisory needs today, tomorrow and well into the future. Archambo Financial Advisors can lead you through the many financial stages of your life.

310 S. Osage

Bartlesville, OK   74003

Fax: 918-336-2214

Securities Offered Through Dominion Investor Services, Inc

Member FINRA and SIPC


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