What are the advantages of owning mutual funds?
A. Many participants enjoy the advantages of owning mutual funds alongside annuity accounts in their retirement plans. The mutual funds chosen for your retirement savings plan provide the opportunity to focus on specific market segments — all of which offer varying degrees of risk and reward opportunities. By owning a combination of funds with different investment characteristics, you may be able to offset the poor performance of one asset class with another that is benefiting from an upward trend. However, diversification doesn’t guarantee against loss.