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Investment Objective

By law, each mutual fund must declare an investment objective, such as aggressive growth, growth and income, global equities, global bonds, municipal bonds, corporate bonds, and so forth. This tells the investor what the fund concentrates on and allows the investor to integrate a particular fund with his or her own needs.

As an example, an investor may not want to hold 100 percent stocks as her portfolio, and adding a bond fund with, say, 25 percent of investable funds would provide an overall position of 75 percent stocks and 25 percent bonds. Such asset allocation is extremely important to the ultimate success of an investor, and can be effectively accomplished with the use of mutual funds.


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