If you are also investing in individual stocks, you may discover that the mutual fund you selected is also heavily invested in the same stocks. Investing in a mutual fund where the top ten holdings looks like your own stock account may increase your risk. I believe a good strategy is to use mutual funds as a way to diversify your investments outside of your individual stocks. Although we all hope to pick winning stocks every time, the reality is you'll pick some good ones and you'll pick some bad ones. Review the mutual fund's top ten holdings periodically to evaluate the risk of any duplicate investments.
Past results is no indication of future performance.
Stocks and sector mutual funds tend to be riskier and more volatile and should be considered by investors that have long term investment timeframes, a tolerance for risk and are willing to accept unplanned volatility. Our opinions are based on sources believed to be reliable and written in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or correctness or the results obtained by individuals using such information. Readers are urged to consult with their own financial advisors before any investment decision is made and all information contained in this information should be independently verified with other sources.