CUNA MUTUAL is providing you with the means for investing in a wide variety of mutual funds. Through MEMBERS Financial Services, you have access to the mutual funds that can best match your investment goals and objectives. You also have access to professional help for your overall financial management planning.
A mutual fund is an investment company whose sole purpose is to invest and manage money for its shareholders. Assets from a large number of people are pooled together and invested, according to a shared or "mutual" investment objective, by a professional money manager.
- Management by investment professionals who carefully track securities and markets on a daily basis.
- Diversification among a number of investments helps reduce the risk of any single holding.
- Affordable low minimum initial and periodic investment amounts.
- Easy access to your investment dollars through sale or exchange of shares at any time.
- Information available through statements, annual reports and educational materials.
- Flexibility in matching investments to your objectives.
There is an increasing range of mutual fund choices. Here are examples of three popular types:
Stock funds seek to increase in value primarily through appreciation in the prices of the stocks held. Historically, stocks have outperformed every other type of investment, and they have outpaced inflation. However, they do carry a higher level of risk than other investments. Thatís because in the short term, their value can rise and fall dramatically with changes in the economy and the financial marketplace.
Bond funds generally seek to generate a high level of current income by investing in corporate and government debt securities. Investors purchase bond funds who are looking to supplement their income or are looking to diversify their investment portfolio. They are a conservative investment, but are subject to the risk of interest rates changing and bond issuers going into default.
Money market funds seek to provide stability of principal and a reasonably steady stream of interest income. These investments are considered the most conservative and least volatile. However, they also tend to provide the lowest rates of return. A risk is that inflation will erode the value of your investment over time.
When you invest in mutual funds, it's important to consider your objectives and risk tolerance. You should select funds that will meet your investment goals and risk preference, while offering the potential for higher returns.
There is a wide range of funds for you to choose from. Major mutual fund companies include Vanguard, Heartland Funds, Franklin Templeton Investments, PIMCO, iShares, and many others, as well as our own Madison Funds®, a diversified family of funds originally developed especially for credit union members - all available through CUNA Brokerage Services, Inc.
Mutual Funds are offered by prospectus only. Prospectuses contain more complete information on management fees, charges, and other expenses and should be read carefully before investing or sending money.
For more information, contact the MEMBERS Financial Services Representative serving CMFG Life Insurance Company for a no cost, no obligation consultation.