Using MMBB Funds to Customize Your Investment Portfolio

MMBB offers members a broad range of investment options. You may invest your entire account in one of our nine funds or you may choose to split your contributions among several investment funds – the choice is yours.

Until you select among the nine funds in which you want to invest, MMBB places your contributions into our most popular fund—The Balanced Fund. As the name implies, The Balanced Fund follows a diversified investment strategy that blends U.S. and international stocks with some bond market exposure. Because the various investments in the fund do not rise and fall at the same rate and to the same degree, the Balanced Fund offers some protection when any one asset class declines.

Our core fund, the Balanced Fund, offers diversification with a tilt toward growth and can serve as the primary holding for many investors. If you want to be a bit more aggressive or a bit more conservative, adding just one additional fund can change your investment profile, while maintaining an overall portfolio that is still highly diversified.

Here are some examples:

If you have more specific questions, like what percentage of each fund makes sense given your investment goals and comfort with risk, contact one of MMBB’s CERTIFIED FINANCIAL PLANNER™ professionals at 800.986.6222 or [email protected].

Risk and Return

When considering your investment options, you need to think about the relationship between risk and return – as the potential for return increases, so does the level of risk. The investment plan that’s right for you depends largely upon your comfort level with risk. The more aggressive you are as an investor, the more risk you may be willing to take. An investor who is more tolerant of risk is more likely to pursue investments, such as stocks, that offer a greater potential return, but are also more likely to generate at least short-term losses. In turn, investments that generally carry less risk also generally come with lower long-term returns, but also less likelihood of short-term losses. This is known as the risk-return tradeoff. Individuals with a longer time until retirement may be willing to accept more risk because they have more time to recoup from any investment losses. To gauge your tolerance for risk, take this quiz developed by Rutgers University http://njaes.rutgers.edu:8080/money/riskquiz/.