Mutual Funds Basics

Mutual funds can seem complicated, but they don't have to be. Start by getting familiar with basic investment concepts.

What is a Mutual Fund?

Potential Benefits of Mutual Funds?

There are many investments that you can choose as you work toward your financial goals, including mutual funds.

Types of Mutual Funds

Becoming familiar with the different mutual fund types may help you select the funds that fit your goals.

Planning for Your Financial Future

When people think of investing, many immediately think of investing for retirement, but there are other pieces of the puzzle to consider.

What Kind of Investor are You?

To answer this question, you first need to determine your risk tolerance level. Risk is the amount of volatility and uncertainty you're willing to accept from an investment as you seek your financial goals.

Measures of the Market

When you invest, you probably have an interest in what the market is doing. But what exactly do people mean when they talk about "the market"?

Market Volatility and Your Investment Goals

No one can predict what the market will do. However, focusing on your original long-term goal can help ease your mind while investing.

Benefits of an Automatic Investment Plan

Invest regularly, using an Automatic Investment Plan (AIP), to potentially smooth out the effect of the market on the cost of your investments.

Asset Allocation and Diversification

Diversification and asset allocation are two very important considerations when investing.

How Compounding Can Work for You

The power of compounding can make a big difference to the growth of your investment account.

What You Should Know About a Prospectus

The prospectus will give you the information you need about a particular fund prior to investing in it.

Which Funds Seek Long-Term Appreciation?

If your goal is long-term appreciation of your investment, there are eight funds in the State Farm Mutual Fund Trust that could fit within your plan.

Funds That May Generate Income

Review funds that generate income in the form of interest and dividends from the bonds or money market securities held in their portfolios.

We help make saving for retirement

Risk Disclosures

Investing involves risk, including potential for loss.

Diversification and asset allocation do not assure a profit or protect against loss.

Dollar cost averaging does not assure a profit or protect against loss.


Not FDIC Insured

  • No Bank Guarantee
  • May Lose Value