Invest in State Farm Mutual Funds

Just as they are a respected leader in the insurance industry, State Farm is becoming a financial services leader as well. State Farm mutual funds are ideal for customers with a variety of financial needs, and they offer a wide range of account types.

Inform yourself. Investing in mutual funds can be complicated, especially for first-timers, so visit Morningstar, listed in Resources below, or other respected investment Web sites to learn as much as possible about investing in general and mutual funds in particular.

Determine if you need help. You can open a State Farm mutual funds account without assistance from a State Farm agent, although this isn't recommended.

Explore your options. State Farm has a wide range of mutual funds on their Web site, listed in Resources below, as well as many types of accounts. Will you be saving money for a rainy day, planning for retirement, setting up a business or saving for a child's college fund?

Make investment decisions. How you invest is determined by your financial goals, how much you are able to invest, how soon you need your money and your preferred investment style. See a State Farm agent or another financial specialist to help with these decisions.

Ask for a prospectus. Whether you will be using an agent or not, you should read it very carefully.

Request an account packet and complete the application.

Return the application to State Farm or your agent with a check.

Tips & Warnings

• Investing in mutual funds allows you to pool money with other investors in a more diversified, and safer, financial vehicle.
• Younger investors have the advantage of investing in stock funds; investors closer to retirement should invest more in bond funds, which have fewer ups and downs.
• The minimum investment for State Farm mutual funds is only $250, and for Automatic Investment Plans (AIPs) it is only $50.
• Although relatively safe, all investments are subject to risk, so research carefully and invest wisely.
• Diversifying your portfolio too much can water down your financial gains. It's important to strike a balance between diversification and overexposure.
• State Farm mutual funds are not FDIC insured, have no bank guarantee and may lose value when redeemed.