Fund Company

Would a rose by any other name smell as sweet? We don’t know—we’re partial to gardenias—but what we do know is this: fund companies go by a number of other names—investment companies, fund sponsors, open-ended fund companies—but they all perform the same sweet, sweet function: investing our money in financial securities.

Here’s how it works: we hire a fund company to help our money make money. We tell them what we want (i.e., we want to invest for maximum long-term growth potential; we’re all about the short-term gains; we want to do everything possible to retire before we turn 40) and they decide how to best allocate our investment capital based on our goals. Maybe they’ll put it in mutual funds, maybe they’ll put it in the stock market, or maybe it’ll be one of those a-little-from-column-A-a-little-from-column-B situations.

Either way, our money’s going into some funds. They might also offer us other financial services, like tax guidance and trust fund management, but the point is this: they help us manage our investment portfolio so we can concentrate on other things. Like planting more gardenias.

See: Wrap Account. See: Family Office. See: Fund of Funds.