Mutual Funds – Stocks – Bonds

Mutual Funds

Mutual funds are a professionally managed type of collective investing that pools money from many investors and invests it in various stocks, bonds, short-term money market instruments, and/or other securities. Each mutual fund has a fund manager that trades pooled money on a regular basis. The net proceeds or losses are typically distributed to all investors annually.

Mutual Funds can work in your favor in four ways:

1. Diversification
2. Professional Management
3. Liquidity
4. Convenience

Stocks

Investing in stocks allows you to own shares of publicly held companies.

Benefits

• Common shares provide excellent long-term growth potential
• Possible dividends create extra income
• Typically outperforms the rate of inflation over the long term

Bonds

A bond is a debt in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest and/or repay the principal at a later date, termed maturity. Bonds provide the borrower with external funds to finance long-term investments. Bonds typically have a pre-determined term or maturity date in which the bond is to be redeemed.

Contact an IPI Representative for more information.