When the market takes a wild ride, many people worry about their investments. Investors can abandon strategies in a knee-jerk reaction to daily, or even hourly, price fluctuations. Wishful thinking won't make investment risk or market volatility go away. But there are five smart steps you can take to help minimize its bite on your portfolio: Diversification Long-term Investing Dollar-Cost Averaging Working With An Investment Professional

Diversification: Diversification means putting your investment eggs in different baskets. We believe that this is the single most important thing you can do to reduce risk in your portfolio. Don't invest too much on a single holding, but vary your investments within different types of mutual funds, such as those available in the Huntington family of funds. This makes tremendous sense because each asset class performs differently in any given economic environment. For example, when one investment class is doing well another may not be performing as well, creating an overall balance. In fact, it has been shown that asset allocation -- the crucial decision of dividing your money among basic investment classes such as stocks, bonds, and money markets -- will drive your performance far more than stock selection, market timing, or any other factor.*

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Long-Term Investing: Keeping a long-range view has its rewards. Rather than searching for a crystal ball that will predict the market's future, you can help improve your prospects just by holding on to the proper investments. It's important to keep a long-term perspective on your entire portfolio of stocks, bonds, and money market instruments. A balanced portfolio can help you ride out the ups and downs of the market, especially in the long run.

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Dollar-Cost Averaging: Dollar-Cost Averaging is a strategy of investing a set amount of money on a regular basis. This method can ease your fear of entering a market at the wrong point. When values are low, your fixed dollar amount buys more fund shares. When investment values are high, your money buys fewer fund shares. Over time, a consistent investment program will smooth out the highs and lows. For example, if you systematically invest $150 each month in a Huntington Fund, your $150 will buy fewer shares when the price is high and more shares when the price is low.

In order to take full advantage of Dollar-Cost Averaging, disciplined and regular investing is mandatory. Therefore, you should consider your financial ability to continue investing through low market periods. Dollar-Cost Averaging does not assume profit and does not protect against loss in declining markets. Experts find Dollar-Cost Averaging to be a valuable strategy for the long-term investor.

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Working With An Investment Professional: An investment professional can be your guide during volatile markets, tailoring your investment plan to fit your needs, time horizons, and risk tolerance. Not only is your Huntington Investment Representative an expert in financial planning, but he/she is also dedicated to understanding your personal goals and preferences -- the cornerstone of your financial plan. Please click here for more information on the benefits of an investment professional.

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Systematic investing does not assure a profit or protect against loss in declining markets and, if the principles of Dollar Cost Averaging are discussed. Because dollar-cost-averaging involves continuous investment regardless of fluctuating price levels, investors should consider their financial ability to continue purchases during periods of low price levels.

Diversification does not assure a profit nor protect against loss.

Contact Huntington Funds About Asset Allocation Call Huntington Funds at 1-800-253-0412