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Tom Meaglia, ChFC®, AEP®,
CLU®, CRPC®, MSFS
Chartered Financial Consultant
Investment Advisor Representative
Chartered Retirement Planning Counselor
CA Insurance Lic. #0567507
Meaglia Financial Consulting
2105 Foothill Blvd., #B140, La Verne, CA 91750
Toll Free: 800-386-3700
Bus: 909-593-6105
Cell: 818-681-8600
Fax: 909-593-6120
Email: tom@meagliafinancialconsulting.com
Website: www.meagliafinancialconsulting.com
November/December 2023
Active vs. Passive
While many people know the differences between stock, bond and money market mutual funds*, they may not be as familiar with mutual fund styles, such as active versus passive. These styles may have a role in your investing strategy as you maneuver through up and down markets and how far you are from reaching your financial goals.
While your financial professional can help you determine the right asset mix for your situation, it still pays to understand how different styles of mutual funds are designed to take advantage of various market environments.
Some mutual funds blend passive and active management, but most are either one or the other. An example of a passive manager would be an index fund manager. These funds generally try to mimic the holdings of a particular index**, so they don’t buy and sell funds as often as an active manager does.
Some index fund managers try to outperform a given index by focusing on a particular part of the index, such as overweighting a country in an international index or underweighting a sector.
An active manager, on the other hand, buys and sells investments, believing the fund can beat a given benchmark. Because this type of fund trades more often, it generally has higher charges and fees than a passively traded fund.
"THE STANDARD & POOR'S 500 INDEX IS COMMONLY MIMICKED BY PASSIVE INVESTMENT MANAGERS. THE S&P 500 REPRESENTS THE LARGEST COMPANIES BY MARKET CAP TRADED IN THE U.S. STOCK MARKET"
*Investors should carefully consider the investment objectives, risks, charges, and expenses of the fund before investing. Read the prospectus carefully before investing or sending money. Because mutual fund values fluctuate, redeemed shares may be worth more or less than their original value. Past performance won’t guarantee future results. An investment in mutual funds may result in the loss of principal.
** You cannot invest directly in an index.
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Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
Insurance and annuity products are not sold through Fusion Capital Management. Fusion does not endorse any annuity or insurance product, nor does it guarantee any insurance or annuity performance. Annuity and life insurance guarantees are subject to the claims-paying ability of the issuing insurance company. If you withdraw money from or surrender your contract within a certain time after investing, the insurance company may assess a surrender charge. Withdrawals may be subject to tax penalties and income taxes. Persons selling annuities and other insurance products receive compensation for these transactions. These commissions are separate and distinct from Fusion's investment advisory fees.
Meaglia Financial Consulting and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.
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