Advantages & Benefits of Mutual Funds

Given the diversity of investment vehicles available today, many clients have asked why we remain focused exclusively on mutual funds. We believe mutual funds bring a unique array of protections and benefits to an investment portfolio.

Mutual funds provide the following advantages:

  • Transparency: Performance and net-asset values are posted and publicly available every day.
  • Diversification: A single share of a mutual fund provides an investment in many individual securities.
  • Liquidity: Mutual fund shares are redeemable daily.
  • Lower Trading Commissions: Mutual funds can negotiate lower trading commissions because they trade in large volumes.
  • No-Load Funds: These funds typically have lower expense ratios than “load funds” because they don’t involve fund peddler commissions.
  • Professional Management: Our process only includes managers with proven performance and lasting fund management skills.*
  • Value: With fees so similar across the spectrum of funds, regardless of quality of management, our rigorous analysis will help ensure that you are paying for the best.

Beyond the overall reasons for using mutual funds, our firm's approach offers clients additional advantages.

Some of the best mutual funds are closed to most investors. However, because we are able to aggregate our assets, we are able to access these funds on behalf of our clients. Similarly, because our assets are aggregated, we are able to use nearly all institutional class funds for clients, which reduces our clients' cost of ownership.

And finally, mutual funds are not priced by the demand in the market. In other words, a skillful manager is unable to charge a premium for the fund. The cost of a good manager versus a bad manager is not correlated to performance. Given this scenario and our approach outlined above, we take great pride knowing that our process helps identify managers who will essentially do more for less. That's a value proposition our clients can appreciate.

To learn more about our use of mutual funds, please contact us directly.

*Past performance may not be indicative of future results. Every investment program has the potential for loss as well as profit. Results are not guaranteed.