Contact Us for customer service. Whatever your age or financial situation, you ought to consider mutual funds to fill a role in your investment portfolio. Today, more than half of American families own mutual funds, and their increasing popularity as an investment vehicle is not a fad, but a solid trend based on several important advantages. As you probably know, a mutual fund is a corporation that sells its shares to investors, and uses the proceeds of those sales not to manufacture a product or provide a service, but to invest.
Mutual funds can invest in almost anything.
These mutual funds invest in both stocks and bonds. The idea is to gain from the price appreciation of growth stocks while also receiving the relatively stable income from bonds. These funds invest in both foreign and domestic companies. This strategy reduces the risk of getting hurt by special economic problems abroad, but also cuts into the gain that would have been realized when foreign economies grow. Growth and Income Funds.