Articles Index

The Pros and Cons of Target-Date Funds
Target-date funds are often thought of as “set it and forget it” funds. For example if you plan to retire in 20 years, you might buy a target-date fund that matches your time-frame -- a target of 20 years. As you approach your retirement date, the fund moves its allocation to more conservative mutual fund investments (holding bonds and cash) and away from riskier mutual funds investments (holding equities).

What Is a UIT
Unit investment trusts (UITs) may be the least understood, and certainly least utilized, of all of the US registered investment companies. What's the problem with UITs? Before answering the question, we need to understand the structure of UITs.

Pros and Cons of TIPS Mutual Funds
TIPS mutual funds offer many advantages to investors. TIPS are bonds issued by the US Treasury that pay a coupon on the adjusted principal of the bond. The bond is adjusted on a semi-annual basis with the rate of the Consumer Price Index (a measure of inflation).

What Is a Sector Fund?
A sector fund is a mutual fund or exchange-traded fund that concentrates its investments in a single sector of the market. If you invest in individual stocks and you’re uncomfortable investing in stocks within a particular sector, then you may benefit from sector funds. You can diversify your portfolio by adding the neglected sector via a sector fund.

Variety of Mutual Funds
There are many types and styles of mutual funds. There are stock funds, bond funds, money market funds and balanced funds. Mutual funds allow you to invest in the market whether you believe in active portfolio management (actively managed funds) or you prefer to buy a segment of the market with no interference from a manager (passive funds and index funds). The availability of different types of funds allows you to build a diversified portfolio at low cost and without much difficulty.

A Primer on Treasury Inflation-Protected Securities
Treasury Inflation-Protected Securities are very different from conventional bonds. A conventional fixed rate coupon bond makes coupon payments on the par amount example: 5% annual interest payment on $1,000) and the par amount is returned at maturity of the bond. Not so with TIPS.