Published: August 5th, 2025
By: The Her Financial Frequency Team

Joining today is a very special guest, E, who supports the group behind the scenes in all things technology. Together, E and Barbie, share not only the mechanics of different funds but also their personal money story—how they went from living paycheck to paycheck to building a real estate investment fund.

Our Journey: From HGTV Dreams to Debt Funds

Like many, we started with the traditional financial path: college, careers, and 9-to-5 jobs. But despite working hard, we found ourselves with no savings, mounting credit card debt, and no clear retirement plan. A turning point came when E stumbled across a commercial about financial freedom through real estate while home with the flu. That moment sparked a journey that led us from flipping single-family homes to investing in apartment complexes, joining masterminds, and eventually launching our own debt fund.

Through trial and error—including learning hard lessons about partnerships, underwriting, and market shifts—we discovered the importance of:

> Building relationships with trustworthy partners

> Diversifying investments across asset types

> Understanding mindset—shifting from scarcity to abundance

This journey taught us that investing is not just about numbers. It’s about energy, alignment, and intention.

Types of Investment Funds (With Pros and Cons)

Here’s a breakdown of the most common types of funds we discussed, with their advantages and drawbacks:

1. Mutual Funds

Pros:

Professionally managed

Diversified portfolio

Liquidity and ease of buying/selling

Good for long-term investing

Cons:

Higher fees (expense ratios)

Limited control over investments

Returns may be lower than expected

2. Index Funds

Pros:

Low fees

Broad diversification

Transparency and simplicity

Strong historical long-term performance

Cons:

Cannot outperform the market

Less flexible during market changes

3. Venture Capital Funds

Pros:

Potential for massive returns

Ability to support innovative startups

High growth potential

Cons:

Extremely high risk

Long lock-up periods

Typically limited to accredited investors

4. Private Equity Funds

Pros:

Potential for significant returns

Focus on turning around underperforming businesses

Diversification beyond public markets

Cons:

High minimum investment

Long holding periods (5–10+ years)

Complex fee structures

5. Hedge Funds

Pros:

Potential for high returns

Flexible investment strategies

Can be uncorrelated to broader market trends

Cons:

High risk and volatility

Accredited investors only

Expensive fee structures (often 20% of profits)

6. Debt Funds

This is where our current focus lies, and for good reason.

Pros:

Steady, predictable income (“mailbox money”)

Lower volatility than equity funds

Offers diversification across multiple asset types

Provides protection in down markets

Cons:

Lower returns compared to high-risk funds

Performance influenced by interest rate changes

By pooling investor money into loans for businesses, real estate projects, and other ventures, debt funds create a win-win: capital for business operators and consistent distributions for investors.

Key Take-aways:

> Diversification is essential. Each fund type carries unique risks and rewards.

> Mindset matters. Shifting from scarcity to abundance opens doors to new financial opportunities.

> Trust your team. The right partnerships and mentors can prevent costly mistakes.

> Debt funds are powerful tools. They deliver steady returns and solve real problems in today’s market.

Final Thoughts:

At Her Financial Frequency, our mission is to show women that wealth isn’t just about numbers—it’s about energy, alignment, and intention. Whether you’re starting with mutual funds or considering private equity, there’s no one “right” path. The key is understanding your goals, your risk tolerance, and the story you want your money to tell.

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Remember: Wealth isn’t just about numbers — it’s about energy, alignment, and intention.

Her Financial Frequency: Helping women stop playing small and start building legacy wealth with purpose.

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