Choosing which mutual funds to invest in depends on factors such as your time horizon, income needs, and risk tolerance. As a general rule, the shorter your time frame is the less risk you should take because if the investment drops in value there may not be enough time for it to recover when you need the money. On the other hand, if you have 15+ years to invest, you may not want to be too conservative with the investment, as it may not grow enough to help you achieve that goal. Further considerations may include tax consequences (e.g. will the investment be owned inside of an IRA, how will withdrawals be taxed and at what rate, etc.).
These are just general guidelines. Your situation may be significantly different from others or you may just personally be a more or less aggressive investor than someone else. The Sit family of no-load mutual funds offers a variety of options to assist you in meeting your goals whatever your time horizon or risk tolerance may be. Below is a chart to help you match each Fund’s investment characteristics with your own personal situation and objectives.
| Income Potential | Growth Potential | Price Fluctuation | |
|
Low
|
High
|
High
|
|
| Sit ESG Growth | Low | High | High |
|
Low
|
High
|
High
|
|
| Sit Large Cap Growth | Low | High | High |
|
Minimal
|
High
|
High
|
|
| Sit Small Cap Growth | Minimal | High | High |
Growth funds’ primary objective is long-term capital appreciation. Potential for a larger reward over time and has a fair amount of risk and volatility. Suitable for investors with longer time horizons.
| Income Potential | Growth Potential | Price Fluctuation | |
|
Low-Medium
|
Medium
|
Medium
|
|
| Sit Dividend Growth | Low-Medium | Medium-High | Medium-High |
|
Low-Medium
|
Medium-High
|
Medium-High
|
|
| Sit Small Cap Dividend Growth | Low-Medium | Medium-High | Medium-High |
A more balanced approach to investing. Asset appreciation and income generation objectives. Can accommodate varied investment objectives and risk tolerances.
| Income Potential | Growth Potential | Price Fluctuation | |
|
Medium-High
|
Low-Medium
|
Low-Medium
|
|
| Sit Quality Income | Low-Medium | Low | Low |
|
Medium-High
|
Low-Medium
|
Low-Medium
|
|
| Sit U.S. Government Securities | Medium | Low | Low |
Primary objective is to generate current income. Best suited for investors seeking income, those with lower risk tolerance, and/or shorter investment timelines. May offer tax benefits.
Your choice of investment products will depend on your investment goals and time horizons, as well as your tolerance for risk. A diversified portfolio of growth and income invested in an array of products helps investors weather market volatility and adapt to market trends. Here are a few ways to allocate your portfolio to fit your goals, timelines, and risk tolerance.
Questions? Call us weekdays between 7:30-5:30 central time at 800-332-5580.
These sample asset allocation portfolios can be constructed using Sit Mutual Funds. The chart to the right shows which category each Fund belongs to.
