Our Portfolio
Investments
Mutual Funds
Equity Funds
Known as an equity investment, stocks represent a share of ownership, or equity, in a company. When a mutual fund buys stocks, it becomes part owner of the business that issued it.
Within the equity category, some types of investments are considered riskier than others. The size of the company is one major variable. Companies with large market capitalization (large caps) are generally well-known companies that have been in business for many years. The S&P 500 Index is an unmanaged index that is generally considered to be representative of the performance of the largest of these large cap stocks. It is not available for direct investment, but you can often purchase an "index fund" which will tend to track its performance.
Small cap stocks entail special risks. They are generally companies in newer industries, or a new company in an older industry, which may not have much of a track record. They can offer the potential for high returns, but also tend to be more volatile and drop more in down markets than large cap stocks. Owning international stocks offers another type of diversification for investors. When the U.S. stock markets are down, at times markets in other countries are up. However, there are significant risks in international investing, including the risks of currency fluctuations, differences in auditing and financial standards, political uncertainty and greater volatility. Funds that invest primarily in developed economies, such as those in Western Europe and the Pacific Rim, are considered less risky than those that invest in emerging markets. Emerging markets include those in Latin America, Eastern Europe