Welcome to the About Funds section. The purpose of this section is to provide a thorough introduction into open-ended mutual funds. Read about the various types of funds, the benefits of investing in funds and what risks you need to be aware of before making your investment decisions. Once you’ve finished reading this information, proceed to the Funds Home page to review the mutual funds available to you.
Reasons to invest in funds
There are a number of reasons why Investors choose to make mutual funds a part of their investment portfolio. Some of the main benefits of funds investing are outlined here.
Redeem on demand
Since funds have an open-ended structure, the price you receive when redeeming your investment will not be dependent on whether a buyer is available; it will be a direct reflection of the underlying assets. Of course, the liquidity of any given fund is determined by the securities in which it invests. Funds are ideally designed for longer term investment opportunities, however there is always a risk that you may not get back what you invested.
Quest for diversification
Diversification refers to the importance of spreading your investments across a wide variety of assets, sectors and regions. This helps you to take advantage of a variety of market movements. Funds offer diversification because most invest in a range of underlying securities, such as shares, gilts or bonds. So, even if the amount you invest is relatively small, you can still achieve diversification through the fund’s investment strategy.
A Fund to fit every need
The wide array of funds available means that you can find one to fit your unique investment needs and strategies.
Investing in hard-to-reach markets
Funds give you access to a wider range of markets than might otherwise be available to you. You can purchase funds investing in emerging or foreign markets, which would give you a more diversified portfolio and could provide more opportunities than the traditional markets.
Have a professional working for you
Funds are managed by a professional fund manager, who will implement the fund’s investment strategy and will work towards achieving the optimal performance.