Making a case for mutual funds

Even in economic downturns, mutual funds can help you work toward your long-term investment goals.

The past few months have been a historically uncertain time in our economy. In 2008, nearly every asset class posted negative returns and volatility has continued into the first part of this year. Investors are bombarded with constant news coverage about market turbulence, embezzlement schemes and economic stimulus packages, and many are left wondering what they should do with their money.

In an era in which no investment has been immune from the effects of the global economic downturn, mutual funds still offer some significant benefits.

Diversification. Diversified mutual funds invest in a wide variety of investments to help smooth out the wild swings of any one investment. In addition, asset allocation and balanced funds select from various asset classes and types of investments to accomplish the proper risk-return allocation for the portfolio. Trying to attain this degree of diversification on your own would be costly and time consuming.

Professional management. Mutual fund investors rely on professional fund managers for research and trading efficiency. Few investors have the time or expertise to successfully research and choose securities to meet their evolving investment goals. Pooled resources allow the fund managers to make large trades that result in a cost-effective, diversified portfolio.

Transparency. Transparency of information is built into all mutual funds. Mutual funds are highly regulated and are mandated by law to keep shareholders informed. Shareholders receive information about activity in a fund through regular statements, reports and updates including transaction and tax information.

Convenience and liquidity. Investors can get started with a relatively low investment, and open-end mutual funds allow you to continue investing at any point in the future. Mutual funds offer investors liquidity so they can redeem shares at any time.

Why Nationwide Funds^®?
With a wide range of options designed for various risk and return profiles, you and your investment professional can use Nationwide Funds to tailor an investment strategy around your specific needs. Nationwide funds offer an objective manager of managers platform with special expertise in asset allocation funds. Work with your investment professional to find out how mutual funds could help you achieve your investment goals.