No-load and load mutual fund investments

No-Load and Load Mutual Fund Investments

Select a family of "no-load" mutual funds PLUS individual self-directed brokerage accounts.

There are many reasons why employees might favor individual participant-directed brokerage accounts -- the vast array of investment selection, the sense of hands-on control, the quick-access to account information. Other employees, though, might feel intimidated or overwhelmed by the extent of investment choice; they might prefer their employer having narrowed the field to a single family of no-load mutual funds that offers sufficient investment selection within a grouping small enough that investors can look at each fund carefully before choosing the one(s) that are right for them.

If your company wants to save your employees money by using either no-load mutual fund investments or self-directed brokerage accounts but can't decide which, no problem!
Your company can offer BOTH a family of no-load mutual funds PLUS self-directed brokerage accounts, letting each employee choose the avenue of investment he or she prefers.
VIEW MORE ON INDIVIDUAL SELF-DIRECTED BROKERAGE ACCOUNTS

Mutual funds are the #1 choice of 401(k) investors.

Mutual fund investments are popular with 401(k) investors for several reasons:

Most mutual fund investments convert quickly and easily to IRA rollover accounts held at the fund company. The investor can keep the same investments and pursue the same investment strategy as with the 401(k) even after terminating employment.
They have exchange privileges that allow investors to transfer money between portfolios within a fund family at no charge or for only a nominal bookkeeping charge.
They are priced on a daily basis, and it's easy to order printed statements.
They are usually offered in more than one class of shares. Investors can weight investment amount, anticipated holding period and other relevant factors in deciding which class of shares to purchase.
Most fund groups offer 24-hour-a-day telephone access to 401(k) account information.
It's easy for investors to access historical and current investment performance and portfolio details by calling the mutual fund companies directly and speaking with an account service representative or requesting prospectuses on the investments.
There are more than 6,500 different mutual fund portfolios available today -- that's double the number available just 10 years ago and nearly 15 times the number available in 1997.
An estimated 67 million U.S. households -- nearly 25% -- invest in mutual funds, either directly or through a company-sponsored 401(k) plan.
"Generation X" (ages 18 to 30) has the lowest level of household assets yet the second highest proportion of financial assets in mutual funds.
The flexibility afforded by mutual fund investments is very important to 401(k) investors, whose goals and retirement savings strategies can change dramatically during the often decades they participate in various 401(k) plans.

It's easy to get mutual fund performance information.

Performance information adds to your knowledge about an investment gained from reading the investment's prospectus. The three most common ways to get specific investment performance information are:

Contact the mutual fund company directly.

Each fund group's toll-free phone number is listed with a selection of suitable 401(k) investments in this website; choose Class A, Class B, Class C, or no-load; when its page pops up, click View, then click on the name of the company whose investments you're interested in.

Utilize free online mutual fund rating services.

A web search for "investment ratings" will bring up dozens of independent, consumer-oriented mutual fund rating services. Morningstar (www.morningstar.com), Standard & Poor (www.ratings.standardpoor.com), Value Line (www.valueline.com), Mutual Fund Investor's Center (www.mfea.com), and Smart Money (www.smartmoney.com) are five of the most popular sources for independent, unbiased ratings and comparisons; they have solid reputations but are by no means the only reliable services.

Utilize your favorite web browser or search engine.

All have quick access to mutual fund information. Please refer to your particular browser/search engine for details.

Keep in mind...

Most rating services charge for certain types of performance information.
Performance information received from mutual fund companies is generally free.

A few comments about risk, return and investing.

Investing is a risk-return dichotomy. Mutual fund money market investments are considered very safe, and offer a relatively low, predictable rate of return, although that return, like any, cannot be guaranteed. At the other end of the risk-return dichotomy are mutual funds that can be extremely voliate, offering investors the possiblity of dramatic gains (and losses). Mutual fund investments can lose value in a volatile market -- just as they can gain value.

Shares of mutual funds are not deposits of, or guaranteed or endorsed by, any financial institution; they are not insured by the Federal Deposit Insurance Corporation (FDIC), Federal Reserve Board, or any other agency, and they involve risk, including the possible loss of the principal amount invested.
In general, the more volatile a mutual fund investment (i.e., the less predictable its rate of return), the more POTENTIALLY lucrative its earnings. (Of course, the opposite can be true, too.) More volatile investments are considered to be more risky investments.
The investment return and principal value of an investment will fluctuate. An investor's shares, when redeemed, may be worth more or less than original cost.
In selecting the mutual fund group for your 401(k) plan, it's important to include a spectrum of investments.

Include a money market fund for conservative investors seeking capital preservation.
Include some lower-risk equity and bond portfolios.
Include some medium-risk equity and bond portfolios.
Include some high-risk/potentially-higher-return equity and bond portfolios.

In this way your 401(k) plan will appeal to employees interested in amassing any of a variety of portfolio mixes. Employees can select portfolios that match their investment experience, temperament and objectives.

The above is not meant as a cookie-cutter formula for arriving at your 401(k) investment mix. It is a good idea to consult a professional tax and/or investment advisor in making your final decisions. We can help, too.

Looking for a mutual fund group we don't list?

Contact us if you don't see the mutual fund group you want when you view the no-load, Class A, Class B, and Class C mutual fund listings.

Call us at (800) 660-0050, or
Contact us via e-mail.

There's a good chance we can add your request to our listing!