A Brief Overview of Mutual Funds

Jason Seale
Aug 31, 2018 · 1 min read

As an investment advisor at American Wealth Management in Petaluma, California, Jason Seale helps clients to understand their 401(k) plans and investment portfolios. Jason Seale comes to his current role following 13 years at PaineWebber, where he served as West Coast mutual fund coordinator.

A mutual fund is an investment vehicle that collects contributions from a number of individuals and invests that money into a group of assets. It can be an excellent way for an investor to automatically diversify, as each mutual fund includes a range of vehicles. Some include a variety of asset classes and thus increase diversification, while others concentrate on a single asset class such as bonds or stocks.

The performance of a mutual fund can depend on whether its management is active or passive. An actively managed fund operates under the direction of an appointed manager who selects investments based on the fund’s objectives and his or her perception of market activity. This means possible higher returns but can also mean greater risk and higher fees.

Often known as an “index funds,” a passively managed fund follows an investment strategy tied to a specific stock index. This automated strategy often means lower fees for the investor.

Jason Seale

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