A mutual fund is an investment that pools the money of numerous investors who have a similar investment goal and invests that money in a number of securities on their behalf. Mutual funds have long been a popular investment choice with individuals just like you because they offer a number of benefits, regardless of the type of investor that you may be. Professional managers with extensive knowledge and specific expertise make the investment decisions. Diversification Mutual funds spread investors' money among many different securities, far more than most individuals would own themselves.
Diversification can help reduce risk over time.
Low investment minimums Mutual funds typically have low minimum investment requirements for both initial and subsequent investments, making them affordable to virtually every type of investor. Mutual funds keep track of your investments and provide a confirmation statement following each transaction. As a shareowner in any State Farm Mutual Fund, you will receive a quarterly consolidated account statement in addition to semi-annual and annual reports. The investment return and principal value of an investment in the fund will fluctuate so that the fund shares, when redeemed, may be worth more or less than their original cost. You should read the prospectus carefully before investing.