Mutual funds are investment products that pool multiple investors' money and manage that money through the purchase and sale of securities. The fund manager follows the objectives found in the prospectus.

Mutual funds were created to help smaller investors reap the benefits of diversification without having to come up with the large sums of money to purchase stock in different companies. Typically, fund families require minimum investments of as little as $250/fund, and even allow someone to start with as little as $50/month if they set up EFT.

Mutual funds are regulated under the Investment Act of 1940. As an investor, you are an owner of the fund. You are entitled to certain rights, such as voting on proxies and receiving annual and semiannual reports. The Financial Industry Regulatory Authority (FINRA) monitors the sale and promotion of mutual funds by brokers to help protect investors from fraud or misrepresentations.

When you select a mutual fund, look for a fund that matches your investment objectives, a solid track record, and a reputable portfolio manager.

You should carefully consider the investment objectives, risks, expenses and charges of the investment company before you invest. Your Northwestern Mutual Investment Services Registered Representative can provide you with a prospectus that will contain the information noted above, and other important information that you should read carefully before you invest or send money.