Resource Center

How a Mutual Fund Works

The idea that there is strength in numbers is the heart of mutual funds. There are many types of mutual funds including money market funds, equity (stock) funds, fixed-income (bond) funds and index funds.

A mutual fund brings together money from many people and invests it in stocks, bonds or other assets. The combined holdings are known as the fund’s portfolio. When you invest in a fund, you own shares in the fund’s holdings.

Each mutual fund is different in its make-up and philosophy. Your investment professional can help you determine your investment goals and risk tolerance and help you select a fund.

Define your goals, work back

Consider your investment goals when choosing a mutual fund type. You will find many funds with objectives and risk levels that match yours. Options range from higher-risk funds with the potential for higher returns to more conservative funds designed to attempt to help you keep up with inflation.

Once you invest, a professional money manager is responsible for making sure the fund stays true to its objective. Keep in mind that there’s no guarantee that the objective will be achieved.

Remember, most mutual funds require a minimum initial investment and you will pay sales charges and expenses.

Explore fund specifics

Always start by reading the fund’s summary prospectus and/or prospectus and other documents before choosing a fund. Look for crucial information about the fund such as:

Investment objective and strategies
Risks
Fees and expenses

You can also get third-party information about the mutual fund through an independent fund rating service. Check online or at your local library. Request a summary prospectus and/or prospectus from your investment professional and read it carefully before you invest.

Have more questions about mutual funds or ready to buy a Nationwide mutual fund? Contact an investment professional today.

NFW-1401AO.3

My Account

Log in to my:

Have your username and password ready.

Contact Us

Shareholder Services
1-800-848-0920

Investment Professionals
1-877-877-5083 (Option 3)

Find a local professional

Email us

Connect with Nationwide:

The Nationwide Mutual Funds described in this site are sold only to persons residing in the United States. Investing in mutual funds involves risk, including the possible loss of principal. Investors’ shares, when redeemed, may be worth more or less than their original cost. Investors should carefully consider a fund’s (and, if applicable, each of its underlying funds’) investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Funds, please call 1-800-848-0920 to request a prospectus. Please read it carefully before investing any money.

Nationwide Funds distributed by Nationwide Fund Distributors LLC, Member FINRA. 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.

Nationwide, the Nationwide framemark, Nationwide Funds and On Your Side are federally registered service marks of Nationwide Mutual Insurance Company. Nationwide Funds Group is a service mark of Nationwide Mutual Insurance Company.