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| A mutual fund is an actively managed portfolio of stocks, bonds, and/or other securities or cash. The value of mutual fund shares fluctuates daily with the aggregate price of the securities in the portfolio. Mutual funds may help to offer reduced risk exposure through diversification as compared with creating a comparable portfolio of individual securities.
Mutual funds can be an excellent addition to your investment strategy if you're looking for affordability, convenience, and experienced professional management. |
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| Types of Mutual Funds |
| Growth Mutual Funds |
- Portfolios hold common stocks to realize capital gains for shareholders
- Usually these funds do not generate current income
- Often they are at the higher end of the risk spectrum, with the potential for greater appreciation (and greater loss) in share price
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| Income Mutual Funds |
- Portfolios hold high yielding bonds and stocks to produce current income for investors
- These funds may be considered less risky than growth mutual funds
- The share price has historically been more stable as compared to growth mutual funds
- There is also less potential for significant share appreciation
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| Tax-Advantaged Mutual Funds |
- Municipal bonds are exempt from federal taxes and sometimes exempt from state and local taxes
- The objective of these funds is to produce regular tax-free income
- The share price has historically been more stable as compared to growth mutual funds
- Low to moderate risk
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| Money Market Mutual Funds |
- Investments are held in short term debt securities
- These funds are designed to preserve principal and generate current income at prevailing interest rates
- Usually the share price does not fluctuate
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All mutual funds charge annual fees for portfolio management, advertising, distribution, and other expenses. These fees are deducted from gross fund revenue. Some funds also carry sales charges called loads.
| Load Types |
| Front Load |
You pay the sales charge up front when you purchase your shares. |
| Back Load |
You incur the sales charge when you sell your shares within a certain specified number of years. |
| No Load |
You incur no sales charges |
BB&T Investment Services, Inc. is a registered broker-dealer and wholly owned subsidiary of Branch Banking and Trust Company. |
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| Contact us by Phone |
| To arrange a meeting with an Investment Counselor, contact your local BB&T bank branch or call 1-800-453-7348 |
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| Contact us by Mail |
BB&T Investment Services, Inc.
200 S. College St., 8th floor
Charlotte, NC 28202 |
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| Investment products offered through BB&T Investment Services, Inc. are:
Not a deposit • Not FDIC-insured • Not guaranteed by the bank •
Not insured by any federal government agency • May go down in value |
Member FINRA. Member SIPC.
Learn more at www.finra.org and www.sipc.org.
Please Note: BB&T Investment Services, Inc. can only serve clients residing in states in which we are currently registered with the National Association of Securities Dealers. For states other than North Carolina, South Carolina, Virginia, Georgia, Maryland, Washington D.C., West Virginia, Tennessee, Alabama, Kentucky, Florida, and Indiana, please call 1-800-453-7348 and select Option 3 for more information.
Copyright © 2009, Branch Banking and Trust Company. All Rights Reserved.
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