Mutual Funds


With mutual funds investors pool their money into a portfolio of securities that is typically diversified and professionally managed. This gives ordinary Americans access to professional fund managers. These mutual fund managers decide the best time to buy and sell providing you the expertise of investment professionals. Funds are aggressive, conservative and places in between.*

*Before investing in a mutual fund, carefully consider its investment objectives, risks, fees, and expenses, which are included in the prospectus available from the fund. Read it carefully before investing.

Maybe the easiest, most familiar way to invest
 
Mutual funds invest in money market instruments, like commercial paper and Treasury bills and seek to provide stability of principal and a steady stream of interest income – while keeping your money liquid and always available to you.
  • You’ll hear the term "rate" used, but money market mutual funds don't pay interest. They pay dividends to shareholders. These dividends are often expressed as a rate of return.
  • A money market account at your credit union shares some characteristics but is very different. When you’re invested in a money market mutual fund, the fund tries to maintain a per-share value of $1, and your return fluctuates with the net asset value of the fund’s holdings. It is important to note, that although a MoneyMarket Fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in a MoneyMarket Mutual Fund.
  • The dividends you receive from money market mutual funds are taxed as ordinary income unless you’re invested in a tax-exempt fund.
Talk to your Financial Professional located at your credit union to learn more about Mutual Funds and see if they are right for your portfolio.*
 

*Before investing in a mutual fund, carefully consider its investment objectives, risks, fees, and expenses, which are included in the prospectus available from the fund. Read it carefully before investing.