Have Mutual Fund Questions? We've got answers.
Find answers to your most common mutual fund questions.
Mutual funds offer you a diversified investment vehicle without requiring a great deal of money. Your investment and those of other investors with similar objectives are pooled to purchase securities.
A professional manager closely monitors the securities held within a fund portfolio to determine if they're meeting the objective of that fund. They buy and sell securities in an effort to get the best return for investors while maintaining that objective. There's usually a fee charged by fund companies for the manager's services. Those fees are normally a fraction of what it would cost you to make stock or bond purchases independently. See the prospectus for complete information regarding fees.
Investing involves risk, including potential for loss.
Target-date portfolios have investment objectives that are adjusted over time to be more conservative as the target date (date the investor plans to start withdrawing their funds) approaches. The principal value of the fund(s) is not guaranteed at any time, including at the target date.
Diversification, automatic investment plans, and dollar cost averaging do not assure a profit or protect against loss.
Bonds are subject to interest rate risk and may decline in value due to an increase in interest rates.
Securities distributed by State Farm VP Management Corp.
Before investing in a 529 plan, consider the plans investment objectives, risks, charges, and expenses. Contact the plan issuer for an official statement containing this and other information. Read it carefully.
Investors should consider before investing whether their or their beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state’s qualified tuition program and should consult their tax advisor, attorney and/or other advisor regarding their specific legal, investment or tax situation.
Not FDIC Insured
- No Bank Guarantee
- May Lose Value