Answers That Could Change Your Financial Future

What resources does Horizon Consulting & Investment Services, Inc. use to evaluate mutual funds?

Morningstar software is the primary vehicle that is used to evaluate mutual funds. However, a variety of periodicals, newsletters, and rating services are used to augment the evaluation process.



What do you look for as you evaluate mutual funds?

Certainly the overall return that has been generated by the mutual fund manager is of the utmost importance. It is not the only criteria, however. The risk assumed by the mutual fund manager to achieve outstanding returns is also of paramount importance. The consistency of returns, expense ratios, longevity of the manager, size of the fund, and a variety of other factors are also examined.



Is the past performance of a mutual fund an indicator of future performance?

No, not necessarily. Despite that statement, past performance is very important in evaluating money managers or mutual funds. Generally speaking, a pattern develops for the performance of mutual funds. Although less than one third of all money managers or mutual funds out-perform the indices (S&P 500 or Dow Jones Industrial Average), there are some mutual funds that consistently out-perform the indices and their peers. If you think about it, past performance is how we evaluate most of the goods and services that we purchase - cars, legal services, appliances, etc.



Is Horizon Consulting & Investment Services, Inc. licensed and regulated?

Yes, Horizon Consulting & Investment Services, Inc. is a Registered Investment Advisor under the auspices of the Securities and Exchange Commision, subject to their rules and regulations.



Do you use “no-load” funds exclusively?

Yes. Certainly there are some “load” funds (mutual funds that charge commission) that have performed admirably through the years. Nonetheless there is no scientific data that indicates that “load” funds perform better than “no-load” funds. There are plenty of mutual funds without sales charges that have risk-adjusted performance records that are equal or superior to “load” mutual funds - at a considerably less cost.



Where are the securities held?

Securities are held at Charles Schwab & Co., Inc. This allows for the online regular review of transactions at a greatly reduced cost. Schwab’s “OneSource” program allows access to thousands of mutual funds without transaction charges. Furthermore, thousands of other funds are available at a very minimal cost.



What distinguishes Horizon Consulting & Investment Services, Inc. from other investment management services?

Complete and total objectivity. My role is to identify and research the best performing mutual funds and securities in the marketplace. I do not “make the market” in any particular security. I do not receive additional incentives or bonuses for choosing certain mutual funds. I am not limited to mutual funds that charge a sales commission. There is no incentive for me to make any security selection that is not in the best interest of the client.

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