Jodi Perez and Jeannie Holliday were named to the 2024 edition of the Forbes list of Best-in-State Top Women Wealth Advisors


Monday – Thursday: 9:00AM – 5:00PM | Friday 9:00AM – 4:00PM

CALL US: (813) 908-2701


Book An Appointment

Call: (813) 908-201

A mutual fund is a financial instrument that pools funds from multiple investors with the objective of investing capital into the financial markets with the aim of earning income and capital gains. The invested capital is managed by a professional portfolio manager who has extensive education, knowledge, and experience in investing. A mutual fund manager will oversee the capital in the funds in accordance with the investment goals and guidelines stated in the prospectus. 

Choosing a mutual fund 

There are numerous mutual funds available to choose from. However, not all of them are the same, each with varying investment guidelines and objectives detailed in the fund prospectus. Therefore, you will need to analyze the performance of each mutual fund you are considering. 

Here are a few tips on how to analyze a mutual fund: 

Determine the investment style 

Look at the investment style described in the prospectus of a mutual fund and see if it matches your own investment goals and risk tolerance. Investment styles can range from highly aggressive to highly conservative. An aggressive investment style usually has the potential for large gains but may come with considerable risk of significant losses. On the other hand, a conservative investment style may have lower risk but does not have as much potential for large gains. Our team of financial advisors can help determine the investment style of the mutual funds that could be a good fit for you. 

Performance comparison 

Take a look at the historical performance of each mutual fund and compare them to each other. If you look more closely, you will be able to determine how consistent each mutual fund has been over the years. If a fund performs extraordinarily well in the most recent year, it may have been just luck. A closer look at the consistency of results will enable you to see if this is the case or not. 

Look at fees charged 

Lastly, you should take the fees charged by each mutual fund into consideration. Although a mutual fund may have the potential for high returns, if the fees charged are exceptionally high, the benefit of large returns is diminished. Also, if the fund has an underperforming year, the high fees you pay could put you significantly into negative return on the investment. 

Funds which are more actively managed tend to charge higher fees. These funds have more aggressive investment strategies usually meaning high potential returns but more risk. Less active funds will charge lower fees but with lower potential for high returns. 

Maximize your capital 

Finding the right mutual fund is just one part of an effective overall investment strategy. You should also look at developing a comprehensive personal financial plan that will help you maximize your capital. This will help ensure you are properly set up to be financially comfortable while also preparing you for retirement, or other long-term goals. 

However, creating a financial plan can be complicated and does require significant research and knowledge of economics and markets. Fortunately, you do not have to do this by yourself. You can always talk with us to help guide you through the process.


Any opinions are those of the author and not necessarily those of Raymond James. This material is being provided for informational purposes only and is not a complete description, nor is it a recommendation. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Investing involves risk and you may incur a profit or a loss regardless of strategy selected. Prior to making an investment decision, please consult with your financial advisor about your individual situation.