| A lot of investors will look at mutual funds as a | | | | only have a greater interest in their investments, |
| great way to start investing. This is because | | | | but they want to pick-and-choose their |
| mutual funds can offer a complete and | | | | investments. Since a balanced fund is |
| comprehensive investment vehicle for people who | | | | all-encompassing, it may include sectors or assets |
| have little money to invest. However, mutual | | | | that you may not believe in. For example, if you |
| funds really are complete and comprehensive and | | | | do not believe in foreign real estate and your |
| can provide investment solutions for everyone, | | | | balanced fund does, you may want to put your |
| including millionaires and billionaires. | | | | own portfolio together. |
| The difference between the investor who is just | | | | And this is what many wealthy investors do. |
| starting out to invest and the wealthy investor is | | | | They will invest in a bond fund that meets their |
| that their needs will be different. Someone | | | | needs and beliefs, an equity fund that they |
| starting out will need a mutual fund that | | | | believe in and so on and so forth. |
| incorporates all of the essentials of investing. | | | | For independent investors, mutual funds may fill a |
| These essentials are cash, fixed income, growth | | | | hole when it comes to their individual knowledge |
| value equities, foreign equities, and specialized | | | | base and comfort level. For example, many |
| equities. | | | | investors are comfortable picking stocks (equities) |
| For the investor who is just starting out, the type | | | | but have little knowledge or interest in the bond |
| of all-inclusive balanced fund described above | | | | market. As a result, they will invest in a bond fund |
| becomes, well, "busy." There is a lot going on in | | | | to so that their overall portfolio is properly |
| the balanced fund, including one of the biggest | | | | balanced. |
| determinants of long-term investment success: | | | | Overall, mutual funds are available for all types of |
| asset allocation. | | | | investors. Whether you need a way to start |
| Does that mean that as your asset base grows | | | | investing properly or you need to fill a gap in your |
| you should get rid of your balanced fund that you | | | | current portfolio, mutual funds provide a wealth of |
| are quite happy with? Not necessarily, but what | | | | options for every investor. |
| most wealthy investors will find is that they not | | | | |