First Investors Mutual Funds
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First Investors has long advocated investing in mutual funds as a key component in building a diversified investment portfolio. Mutual funds are comprised of a large basket of securities, such as equities, bonds and money market instruments, and thus offer the benefit of built-in diversification. When you invest in a mutual fund, you essentially pool your money with other investors who have similar goals and allow a professional asset management team to make the underlying investment decisions about dozens of securities most people cannot afford to buy on their own.
Please Note: Diversification and asset allocation do not guarantee a profit, nor do they eliminate the risk of loss of principal.
Core vs. Non-Core
There are two main categories of First Investors mutual funds: core and non-core. Core funds are those that should be considered as part of a foundation for a complete investment program. They are generally considered to carry a moderate level of risk and are well diversified. Examples of First Investors core funds include: Growth & Income, Total Return, and Investment Grade.
First Investors also offers non-core funds that carry a higher degree of risk. Non-core funds can be useful to add diversification to a portfolio, or to achieve a specific investment objective. For example, our International and Global are non-core funds that can be used to give an investor exposure to growth opportunities outside the United States.
Whether you're a novice or an experienced investor, whether your goal is to provide a comfortable retirement, fund a college education, increase current income, save for a new home or provide tax savings, First Investors registered representatives can help you decide on an appropriate mix of core and non-core funds for your investment portfolio.
Equity, or stock funds, invest primarily in companies of varying sizes (small caps, mid caps, large caps), and can be domestic, international, or both. On balance, equity funds have the highest potential rate of return, as well as the highest level of risk. Examples are these First Investors funds: Global, Growth & Income, International, Opportunity, Select Growth, Special Situations, and Equity Income.
Taxable Bond Funds
Taxable bond funds invest in securities issued by the U.S. and foreign governments, including government agencies, and corporations, as well as mortgage-backed bonds and asset-backed bonds. The interest income from these bond funds is taxable at both the federal and state level. They are best suited for investors who seek current income. Examples are these First Investors funds: Government, Investment Grade, Floating Rate, Strategic Income, International Opportunities Bond, and Fund For Income.
Mixed Asset Allocation Funds
Also known as "Balanced Funds," these types of portfolios are a mix of stocks, bonds and cash, and are geared to investors who seek total return and diversification. An example is the following First Investors fund: Total Return.
Municipal Bond Funds
These funds primarily invest in securities issued by municipalities to finance public projects such as bridges, schools and highways. The primary benefit of investing in municipal bonds is their tax-exempt status. Depending on where investors live, they may be able to invest in municipal bond funds that are "triple tax exempt" (exempt from local, state and government taxes). However, these funds are subject to interest rate risk and market risk. Therefore, the values of the funds' shares will fluctuate. Examples are these First Investors funds: Tax Exempt Income and Tax Exempt Opportunities, plus these 12 single state funds: California Tax Exempt, Connecticut Tax Exempt, Massachusetts Tax Exempt, Michigan Tax Exempt, Minnesota Tax Exempt, New Jersey Tax Exempt, New York Tax Exempt, North Carolina Tax Exempt, Ohio Tax Exempt, Oregon Tax Exempt, Pennsylvania Tax Exempt, and Virginia Tax Exempt.
Money Market Funds
Money market funds invest mainly in securities known for their high credit quality, and therefore, they tend to have the lowest level of risk as well as the lowest level of potential return. These funds attempt to maintain a constant share price of $1.00, however there is no guarantee that they will be able to do so. An example is the following First Investors fund: Cash Management.