Northwestern Mutual Mock Interview
Practice 30 Northwestern Mutual interview questions covering financial services, relationship building, and the company's mutual philosophy.
Question 7 of 30
How would you explain mutual funds to someone unfamiliar with the concept?
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Rachelle Enns is an interview coach and job search expert. She works with candidates to perform their best in employment, medical, and post-secondary admission interviews.
Mutual funds may be a basic concept to you, as a wealth management professional; however, the point of the question is for the interviewer to determine how well you can explain financial products to your clients.
Northwestern Mutual has a reputation for educating their clients, helping them to understand common concepts in wealth management better. Show the interviewer that you can deliver these expectations by simply and clearly describing what mutual funds are, being sure to highlight the benefits.
Rachelle Enns is an interview coach and job search expert. She works with candidates to perform their best in employment, medical, and post-secondary admission interviews.
"I understand that the world of wealth management can be overwhelming and complicated, which is why it's imperative that I can explain concepts and products very simply. All a client wants to know is if the product is right for them, why it's right, and what kind of results they can expect. For that reason, I would explain mutual funds as a professionally managed money pool. The money pool is used to purchase securities, ideally resulting in a financial return for every investor."
Rachelle Enns is an interview coach and job search expert. She works with candidates to perform their best in employment, medical, and post-secondary admission interviews.
"Mutual funds are a basic financial concept, so it's important that every one of my clients has a solid idea on how they work. I would tell a client that when they buy a mutual fund, they are pooling their money with many other investors. This pooled money lets them invest more widely for a lower cost. A professional manager decides where to invest this money pool. Mutual funds are flexible, allowing a client to buy or sell their funds at any time."
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Anonymous Answer
Well, mutual funds are a way of collecting people's mutual (or collective) funds and investing them in a collection of securities. This disperses the risk two-fold, spreading it over many clients and investments, and allows easy diversification.
Marcie's Feedback
Nice! The interviewer will appreciate that you can explain this concept. Do you have any personal experience investing in mutual funds? Is this an investment vehicle you would potentially recommend to clients? Add some more details to make your answer even more meaningful and memorable to the interviewer. Great job!
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