News coverage about market uncertainty can leave you wondering how to invest your money. Here are four ways mutual funds can help you work toward your long-term investment goals.
1. Diversification
Diversified mutual funds invest in a variety of investments to help smooth out broad swings of any one investment. Certain types of mutual funds – such as asset allocation and balanced funds – select from various asset classes and types of investments to accomplish the proper risk-return allocation for the portfolio. Trying to attain this degree of diversification on your own would be costly and time consuming.
2. Professional management
It takes time and expertise to successfully research and choose securities. Mutual fund managers can provide both, along with trading efficiency. And because mutual funds have multiple investors, the fund manager can make large trades, which results in a cost-effective, diversified portfolio.
3. Transparency
Transparency of information is built into all mutual funds. Mutual funds are highly regulated and are mandated by law to keep shareholders informed. If you invest in these products, you will receive information about the activity in a fund through regular statements, reports and updates including transaction and tax information.
4. Convenience and liquidity
You can open a mutual fund account with a relatively low investment. If you choose an open-end mutual fund, you can continue investing at any point in the future. Mutual funds also offer investors liquidity so you can redeem your shares at any time.
Important considerations
Investing in mutual funds involves risk, including the possible loss of principal. Your shares, when redeemed, may be worth more or less than their original cost. There is no assurance that the investment objective of any fund will be achieved. You should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Funds, please call 1-800-848-0920 to request a summary prospectus and/or a prospectus. You can find pricing and performance information information for Nationwide mutual funds online. Select a particular mutual fund to learn more about it.