This is particularly helpful for equity investors. An adviser can help you gain the emotional objectivity and discipline it takes to avoid selling at the wrong time and losing your long-term benefits. Today, many investors are turning to mutual funds in search of returns that are no longer available from CDs and money market instruments. CDs, of course, offer a fixed rate of return and money markets seek to maintain a fixed principal, while both the investment return and principal value of mutual funds will fluctuate and thus present greater risk. And, even though funds, unlike CDs, are not insured or guaranteed by the U.S. Government, they can be an attractive alternative.
Some funds offer a performance advantage.
Most are diversified, meaning that they invest in a number of stocks or bonds. They are liquid, although on redemption shares may be worth more or less than their original cost. However, while having a large quantity and a great variety of funds from which to choose can be appealing, it can also be a potential pitfall. It's much easier to make the wrong choice. That's why many investors prefer to seek the counsel of an experienced financial adviser to help them develop successful investment strategies and make educated choices.