Curious about mutual funds? In this video, we dive deep into the structure of mutual funds to help you understand them better. So many options, but we’ve got you covered!

In this episode, you will learn the following :

• Owning a variety of mutual funds doesn’t guarantee proper diversification.
  
• Utilizing Individual Retirement Accounts (IRAs) and 401(k)s can significantly impact your financial future due to their tax advantages.
  
• Mutual funds are suitable for investors who are either starting or prefer not to manage their own stock portfolios.
  
• Target date funds automatically adjust investment strategies based on the investor’s age and proximity to retirement.
  
• Assessing mutual fund suitability requires understanding key investment metrics such as past performance, expense ratios, turnover ratio, manager tenure, alpha, beta and Sharpe Ratio.
  
• Be aware of the “phantom index” effect where mutual funds mimic an index fund but with higher fees.
  
• The R squared value is a statistical measure that reveals a fund’s alignment with its benchmark index and can be a tool to avoid paying high fees for index-like results.
  
• Risk drift occurs when certain assets grow and unintentionally increase the risk in your portfolio.