How to Research Hartford Mutual Funds

Part of the well-known insurance company founded in 1810, Hartford Mutual Funds is one of biggest and most popular investment companies. The Wellington Management Company, which can trace its roots back to Walter Morgan and the first mutual fund investment in 1928, manages a wide array of equity funds for The Hartford, while the investment options managed in-house include both highly rated bond funds and large-cap mutual funds. The company has over $30 million in assets, and investor confidence is quite high.

Difficulty: Moderate

Instructions

Things You'll Need:

• Initial investment

Research Hartford Mutual Funds

1. Realize that the company's original success at selling insurance made its move into the investment arena relatively smooth. The selling and management of insurance requires an ability to manipulate finances in a way that insures growth, so the Hartford began capitalizing on that skill by managing mutual funds.

2. Take a look at one of Hartford's largest mutual funds, the Hartford Capital Appreciation HLS IA (HIACX). Started in 1984 and managed by Saul J. Pannell, the fund focuses mostly on large-cap stocks from businesses in the sectors of manufacturing, information and services, while about 35 percent of its assets or less will generally be allocated to non-dollar securities and the securities of foreign issuers.

3. Check out the performance and rating of the Hartford Capital Appreciation HLS IA. Morningstar gives this fund a rating of 5 stars, and the annual return was 16.61 percent in 2006, 15.55 percent in 2005 and 19.36 percent in 2004. In 2002, the fund posted a negative annual return.

4. Invest as little or as much as you want. There is no minimum investment amount.

5. Research another one of the top-rated funds from Hartford, the Hartford Capital Appreciation A (ITHAX), which was begun in 1996 and also managed by Saul J. Pannell. The investment strategy of this large-cap fund focuses about 65 percent of its assets on the common stocks of small, medium and large businesses in the manufacturing and services sectors. A combination of foreign issuers and non-dollar securities (which include emerging market securities) account for the remaining funds.

6. Appreciate the 5-star Morningstar rating assigned to this fund. Also note the impressive annual returns of recent years: the annual return was 15.66 percent in 2006, 15.10 percent in 2005 and 17.93 percent in 2004. The fund posted a negative annual return in 2002.

7. Prepare for an initial minimum investment amount of $1,000 for the Hartford Capital Appreciation A. Subsequent investments must be at least $50.

8. Research one of the other 300-plus mutual funds offered by Hartford. These include a variety of investment options, including high-yield bonds, disciplined equity funds and global growth funds.

Tips & Warnings

• A common investment mistake is lack of diversification. If you're investing in multiple mutual funds, you want to make sure you do not duplicate fund categories, for instance, by selecting two small-cap funds. Research your options to ensure you cover a range of investment opportunities.

Resources

• The Hartford website for mutual funds.