There are so many types of trust funds each with its own objective that there is always a fund that is suitable to every investor.
You may choose mutual funds with specific investment objectives to round out your portfolio. Or you may choose a number of mutual funds with different objectives to create a diversified portfolio.
Many investors use global trust funds to invest in world-wide markets both as a hedge against market downturns at home and as a way to take advantage of strong economies abroad.
To achieve its investment objective — whether it is long-term growth or capital appreciation or anything in between — the fund’s manager invests in securities he or she believes will provide the results the fund seeks.
To identify those securities, a fund’s research staff often does a detailed analysis of the individual companies issuing the securities.
When the objective is small-company growth or the focus is on emerging markets, the process can be more difficult because there's limited information available on small company stocks and also these stocks are less liquid.
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