An Investor's Guide to Mutual Fund Growth

A mutual fund is a type of financial vehicle made up of a pool of money collected from many investors to invest in a diversified portfolio of stocks, bonds, or other securities.

Mutual funds are managed by professional fund managers, who allocate the fund's assets and attempt to produce capital gains or income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus.

Several key factors determine how your mutual fund investment will grow:

• Contributions: The amount of money you invest, both initially and on a recurring basis. Consistent contributions are key to building wealth.
• Annual Return: The rate at which your investment grows each year. This is not guaranteed and will fluctuate with the market.
• Expense Ratio: The annual fee charged by the fund. A lower expense ratio means more of your money stays invested.
• Time: The longer your money is invested, the more time it has to benefit from compound growth.

• Initial Investment: Enter the amount you're starting with.
• Monthly Contribution: Input the amount you plan to add each month.
• Expected Annual Return (%): Estimate the fund's average annual return.
• Expense Ratio (%): Enter the fund's annual fee.
• Investment Period (Years): Set the number of years you'll be investing.
• Calculate: Click the button to see your projected growth, including a chart and a breakdown of your final value, total investment, and returns.