Broker Check

Mutual Funds

Mutual Funds

Elm Tree Capital offers a comprehensive range of mutual fund investment options that include over 18,000 mutual funds from over 550 mutual fund companies. This competitive offering is supported by our screening, analysis  and professional advice to help investors select the most appropriate funds for their investment strategy.

Open-End Mutual Funds

An open-end mutual fund is a type of investment company that pools money from many investors and invests the money in stocks, bonds, money-market instruments, other securities, or even cash.  The investment portfolios of mutual funds typically are managed by separate entities known as “investment advisers” that are registered with the SEC.

An unlimited amount of shares are available to investors and the shares can be purchased from the fund itself or through a broker of the fund.  Shares are generally redeemable and sold on a continuous basis and trade at their Net Asset Value (NAV), which must be calculated at least once a trading day.

Mutual funds include  two cost structures, load and no-load.  Both include management fees, but the former will include sales fees and commissions.

There three main reasons to invest in mutual funds include:

  • Diversification: Spreading assets among different investments may help reduce the risks associated with investing. Mutual funds can offer instant diversification to investors who otherwise may not have the purchasing power to do so.  However, diversification does not ensure a profit or protect against a loss.
  • Convenience:  Mutual funds are easy to purchase and sell. Investors can simply match their risk tolerance, objectives and time line to an appropriate mutual fund. Professional managers do all the work.
  • Professional management:  Funds are handled by professionals who have both experience and knowledge of the industry. These managers conduct all the necessary research, and manage all transactions in the account.

There are many varieties of open-end mutual funds, including index funds, stock funds, bond funds, and money market funds. Each may have a different investment objective and strategy and a different investment portfolio. Different mutual funds may also be subject to different risks, volatility, and fees and expenses. Fees reduce returns on fund investments and are an important factor that investors should consider when buying mutual fund shares.

Closed-End Mutual Funds

Closed-end mutual funds are similar to open-end mutual funds with the exception that a limited number of shares are available to the public.   Once these share are sold, the fund is listed on an exchange and new investors must purchase them in the market.  They may trade at a discount or premium to their Net Asset Value (NAV).

As with other investments, Mutual Funds are subject to market conditions and other associated risks. There is no guarantee that any specific fund or investment strategy will meet its investment objectives. For more complete information on any mutual fund, please request a prospectus and/or, if available, a summary prospectus from Elm Tree Capital and read it carefully. Before investing, carefully consider the investment objectives, risks, and charges and expenses of the fund. This and other information may be found in the fund's prospectus. Read the prospectus carefully before you invest.


Mutual Fund Investing: Look at More than a Fund's Past Performance >