Wellving Asset Management give their insight into mutual funds. Speaking on behalf of them was VP Finnegan Meyers and he had this to say, "If you want to invest in the stock market but don’t have a large enough portfolio to achieve the diversity you want through individual stock purchases, mutual funds are certainly a good direction to go."
Mutual funds are a collection of stocks designed to meet a stated investment objective or strategy. For instance, you may be able to choose between a fund that holds small- or mid-sized companies, large blue chip companies, or government bonds. Some funds are designed to provide growth, others to give you income.
He then went on to say, "A fully diversified mutual fund can offer you dozens and sometimes hundreds of individual stocks or bonds. Achieving a similarly diversified portfolio by purchasing individual stocks is more difficult and costly. As with all investments it is important to understand the risks involved."
In this section he talks about the risks. "Mutual funds provide a stated objective or strategy, giving you some understanding of the level of risk and the potential for return. You can get an understanding of the fund’s objective and past performance by reading its prospectus. But a fund’s stated objective may not tell you the whole story.
"Many funds have a great deal of latitude in which stocks they may actually buy. Therefore, even if you own shares of six different funds, each supposedly invested under a different type of overall objective, you may not be as diversified as you think. Each of the six funds may hold shares of the same stock. This would increase your vulnerability to market corrections, even though you may not be aware of the risk.
"A mutual fund’s performance depends in large part on its portfolio manager. So, what happens if the fund’s manager changes his or her strategy during the investment period or the fund changes managers? Having an investment advisor who meets regularly with the fund’s manager to determine his or her strategies and meets with the fund company to determine its policies for hiring and maintaining quality portfolio managers can help you minimize this risk."
Wellving asset Management have a very experienced Analytical team and a wealth of successful Fund Managers, Wellving have spent years and years honing these skills and have created funds that show steady low risk returns for clients.
2-5-6, Kyutaromachi, Chuo-ku, Osaka-shi, Osaka
At Wellving AM we offer our clients access to a wide range of financial products including fixed income securities, interest rate swaps, foreign exchange, equities, equity derivatives, credit derivatives, commercial real estate, commodities, futures, and structured products. We also provide a comprehensive range of services to the financial community, including trade execution, broker-dealer services, clearing, processing, information, and other back-office services.
Our team of advisors and financial experts have a wealth of experience spanning may industry sectors, we are happy to discuss your individual needs and evaluate your portfolio.
