Final answer:
To research the Freedom North America Fund, Gio should review the fund's prospectus, check financial news outlets, consult mutual fund rating agencies, and look at regulatory filings. Diversification and fund comparisons are also critical in assessing its suitability for a client's portfolio.
Step-by-step explanation:
Researching a mutual fund like the Freedom North America Fund should begin with reviewing its prospectus, which provides details about the fund's objectives, investment strategies, fees, and historical performance. Gio can look for this information on the mutual fund's own website or through an investment brokerage firm. Additionally, independent research can be obtained from financial news outlets, mutual fund rating agencies such as Morningstar, and the Securities and Exchange Commission's EDGAR database, which contains regulatory filings for investments.
It's important for Gio to understand why diversifying your portfolio is beneficial. Diversification helps manage risk and reduce the impact of volatility by spreading investments across various asset classes and sectors. This is a key rationale behind the use of mutual funds, as they inherently invest in a multitude of stocks or bonds.
Lastly, Gio should compare the Freedom North America Fund with other similar funds in terms of performance, risk level, and fees to assess if it's a fitting option for his client's investment goals and risk tolerance.