Mutual funds can be a smart way to manage your money and diversify your risk. UVEST registered sales representatives, located in most TCF locations, offer access to mutual funds managed by some of the largest mutual fund companies in the country. See below for additional information about investing in mutual funds.

• What is a mutual fund?
• What are the important features of mutual funds?
• Information about Mutual Funds
• Is Mutual Fund Investing Safe?
• What Types of Funds are Available?
• Which Funds Should I Choose?
• When is a Good Time to Invest?
• How Do I Pay for a Mutual Fund Purchase?
• Want more information?

• What is a mutual fund?
  A mutual fund is a diversified, professionally managed portfolio of securities. Most mutual funds include stock and/or bond holdings in dozens or more different companies. So, when you invest in a mutual fund, you are buying shares in a multi-million dollar portfolio.

  Your investment is pooled with those of thousands of other investors. The result is broader diversification than you could achieve on your own. Diversification is important because your money is spread out over many investments, and thus is not dependent on any single investment.

• What are the important features of mutual funds?
  

  • Professional management. Each fund is managed by one or more professional fund managers. They decide which securities to include in a fund and when to sell particular securities in the fund. They follow a strategy designed to achieve the fund's objective at the appropriate level of risk. The benefit to you is that you do not need to be an expert in the market because the fund managers are.

  • Diversification. You spread your risk when you invest in mutual funds. Your money is pooled along with the money of many other investors. The fund managers then invest the money in many different companies so that your return is not dependent on the success or survival of any single company. Diversification cannot guarantee a profit or protect against a loss.

  • Relative liquidity. Your investment can be liquidated quickly (unless your fund is a retirement account, in which case certain restrictions apply). In most cases, you can elect to redeem shares by telephone or mail. Redemption is at the then current net asset value, which may be worth more or less than the original purchase price. Mutual funds should be considered long-term investments.

  • Low minimum investments. You can purchase mutual funds with a low initial investment, or start a systematic investment plan. Systematic investment plans do not assure a profit and do not protect against loss in a declining market.

• Is Mutual Fund Investing Safe?
  Unlike bank savings accounts, Treasury bills and certificates of deposit (CDs), mutual funds are not insured or guaranteed by the federal government. Prices of most mutual funds fluctuate daily with changes in financial markets. However, staying invested over significant periods of time can help reduce the impact of short-term fluctuations.

  Below are some other aspects of mutual funds and the mutual fund industry to consider:

  • Diversification. Mutual funds are usually diversified among many different holdings, which can help reduce risks associated with a single investment. Diversification cannot guarantee a profit or protect against a loss.

  • Liquidity. Investors can generally redeem, or sell, mutual fund shares at any time for the current market value.

  • Industry Standards. The mutual fund industry is one of the most highly regulated in the U.S. economy:

  • The industry is overseen by the Securities and Exchange Commission (SEC), which conducts regular audits of mutual fund companies.

  • All communications, including shareholder reports and sales material, must comply with guidelines set by the Financial Industry Regulatory Authority (FINRA).

  • Independent directors supervise each mutual fund, independent auditors analyze fund financial statements, and major banks act as custodians for all mutual fund assets.

• What Types of Funds are Available?
  Mutual funds generally invest in:

  • Stocks

  • Bonds

  • Short-term money market securities

  • A mix of all of the above

  Some funds can invest all over the world or only in certain regions, while others focus on specific industries or sectors of the economy. There are funds that invest only in large companies and funds that invest in small companies. More than 8,000 mutual funds are available in the United States.

• Which Funds Should I Choose?
  It depends on your financial goals, investment time, risk tolerance and financial circumstances. It is a good idea to meet with a financial adviser and discuss these questions:

  • What are your goals? What will you eventually do with your money? When will you need it? If you are investing for retirement, the younger you are the longer you will have to take advantage of growth-oriented stock investments. But if you need the money sooner, you may want your investments to be less volatile and more accessible, making bond funds and money market funds more appropriate.* Keep in mind, however, an investment in these types of funds is not guaranteed and can go down in value.

  • What is your risk tolerance? Before you invest, try to decide how much price fluctuation you can tolerate. Over the long term, stock and bond prices have generally been determined by corporate earnings. But emotion can also influence the market. When stock prices are rising, investors tend to ignore risk; when prices are falling, investors tend to overlook the long-term opportunities.

  • What are your financial circumstances? Do you have other savings or assets in addition to the money you want to invest in mutual funds? If so, these should also be considered as you make your long-term plans.

• When is a Good Time to Invest?
  No one knows what the financial markets will do from year to year, month to month or even day to day.

  There is no such thing as a "perfect" time to invest. Looking back over the past 30 years, any time has been the right time to begin an investment program. The key to long-term investment success is not when you invest but that you do invest.

• How Do I Pay for a Mutual Fund Purchase?
  There are several ways to invest in mutual funds. Many funds are sold with a sales charge, known as a "load," payable at the time of purchase (up-front) or when shares are sold (back-end). Part of the load is used to compensate financial advisers for their services.

  Some funds have a "contingent deferred sales charge," which applies only if shares are sold within a certain period after purchase. Other funds are sold with no up-front or back-end fee but have higher ongoing expenses. Still others are sold directly to the public, instead of through a financial advisor, and are known as "no-load" funds because there is generally no sales charge.

  All mutual funds have annual expenses, paid by the shareholders as a percentage of their assets. Annual expenses can have a greater impact on the actual cost of share ownership than sales charges if you intend to hold your fund shares for the long term.

  Many mutual fund companies offer several share classes with different fee structures to give investors more flexibility. A financial advisor can help you decide the best payment method for your financial plan.

• Want More Information?
  To help you determine your financial objectives, evaluate your tolerance for risk, and develop a long-term investing strategy, phone or visit one of our registered sales representatives located at most TCF locations.

*The return of principal in bond funds is not guaranteed. Bond funds have the same interest rate, inflation and credit risks associated with the underlying bonds owned by the fund.

You should consider a mutual fund's investment objectives, risks, and charges carefully before investing. Contact your UVEST registered sales representative, located in most TCF locations, to request a prospectus, which contains this and other information about a specific mutual fund. Read it carefully before you invest.

Past performance is no guarantee of future results. Investment return and principal value of a mutual fund will fluctuate causing shares, when redeemed, to be worth more or less than their original cost.