Archive for: ‘January 2015’

The Secrets To Picking The Best Mutual Fund

January 26, 2015 Posted by admin

Investing in the stock market is too dangerous and too risky for many people. The fact of the matter is, unless you’ve had fairly specific training and a lot of experience doing it, investing is very hard and since we’re talking about people’s lives and their retirements, you don’t want to take any chances that you don’t have to.

But you have to invest in something, and so luckily we have mutual funds which allow people without the necessary investment skills to, nonetheless, invest for the future and for their retirements. But of course this begs the question, which mutual funds should you invest in?

In this article today I want to discuss several secrets that I have for picking the best mutual funds. Anybody can take advantage of these secrets, you just need to know a few things that I will be discussing right now.

First I should mention that there are usually two types of investors. The first type just wants to preserve their capital and increase it at slightly greater than the rate of inflation. The other kind of investor wants to make huge over sized returns. Both can find places in mutual funds to make them happy.

My first secret is to identify the best performing no load mutual funds that follow your specific objectives, whether you are looking to preserve capital or shoot for the moon as I alluded to above. You can find this information at most financial websites with a little searching. One strategy would be simply to invest in several of the top performers and evaluate again in a year or two to see which ones have performed the best.

My next secret is to analyze the performance of the mutual fund in great depth. Most people look at a mutual funds performance during the last couple of years but I prefer to go back several years or as far back as a decade or longer. Why is that? Because most mutual funds will do okay during a bull market when the stock market is up in general. But you want to look back into the past during recessions to see how well the mutual fund has performed then so that you have some sort of an idea how well they will perform during future financial downturns.

My next secret is to look for consistency. Read the annual reports from every fund that you’re looking to invest in for the past 5 to 10 years. Those reports will describe the overall strategy of the fund. Has the fund’s strategy remained consistent over the long-term or have they changed from fad to fad over time, wildly chasing profits. You want a firm that engages in consistent strategies with a proven track record of profit steadily over time.

Well there you have three fairly good secrets that will help you to choose the best mutual fund for your investment needs. Hopefully this will shed some light and help you to understand what to look for in a fund. At the very least, it should help get you out of the risky stock market and into the relative safety of the mutual fund world.

Alternatives To Car Dealership Financing

January 23, 2015 Posted by admin

Everyday many people resort to car dealership financing in order to purchase a car. What not everybody knows is that car dealerships offer financing at excessively high interest rates and that there are other financial alternatives that can provide the funds needed for purchasing a car at more reasonable costs.

There are traditional banks and lenders offering car loans and non traditional lenders too offering car loans for people with bad credit [] or financial difficulties. Thus anyone seeking finance to purchase a car can get approved with significantly lower costs than financing with a car dealership the purchase of the vehicle.

Car Dealership Financing’s Drawbacks

Financing through a car dealership can be extremely expensive. The interest rate charge by dealerships is almost doubling the interest rate charged by traditional lenders. These high prices are due to the fact that when you resort to car dealerships for financing there is a third party that provides the funds. Thus you are paying for the services of two roles: The actual lender and the intermediary.

Besides, car dealerships only offer financing for the cars that they sell. Thus, your options as regards to brands and models are limited. And if you happen to find a private lender offering for sale the car of your dreams at a very advantageous price, you can never resort to a car dealership in order to get the funds for purchasing the car.

Traditional Lenders And Banks

Banks and traditional lenders offer finance for car purchases at very reasonable rates. Car loans are secured loans and thus carry low interest rates compared to personal loans that are unsecured. However, in order to get approved you need to show proof of a clean credit report and a steady income that will let you afford the monthly payments.

A car loan offered by a traditional lender will let you purchase any car you want and also if you visit car dealerships after getting approved for a car loan you can always bargain the price of the cars with the dealer and have more options as to the brand and model of the car that you will purchase.

Non Traditional Lenders

Car loans offered by non traditional lenders provide financing for those with irregular credit and income situations. You need to always show proof of a suitable income, but you do not need to prove that you have been in the same job for many years or that your wage is deposited into your bank account.

Besides, the credit requirements are relaxed and anyone can get approved for a car loan as long as there are no mayor delinquencies in their recent credit history. Someone with bad credit, no credit at all or even a past bankruptcy on his credit report can obtain car loan financing through these non traditional lenders.

Where To Find Them?

The best way to obtain finance through a non traditional car loan lender is to seek lenders online. You can do a quick search for bad credit car loans online and you will find many online lenders willing to offer you finance regardless of your credit. You may have to face slightly higher rates but the monthly payments are always affordable enough so any budgets with a regular income can meet them without sacrifices.

Car finance becoming increasingly scarce in Australia

January 21, 2015 Posted by admin

The world economic global crisis has had a huge and negative impact on the car finance industry in Australia because the major suppliers of car finance here have recently withdrawn from the car finance market. GE Money and GMAC who are believed to have had at least 60% of the car finance market in Australia have suddenly withdrawn from this market. While GE Money has continued to play in the credit card market where it has been increasing interest rates in Australia (as have many other lenders) in October it announced that it would no longer fund car finance or their third party mortgage distribution channels.

GMAC also announced that it was withdrawing from car finance because the cost of funds was too high or funds for car finance were simply not available. Because of the devastation caused to the finance sector as a result of the irresponsible sub-prime lending in the USA, investors who would normally buy securitised home loans and car finance loans for a good return on their money are now afraid that they may lose money on any such investment. As a result those who are willing to invest in car finance loans or home loans are seeking a much higher rate of return because of the perceived increase in risk. GMAC has advised the market that their cost of funding car finance is now too high and until car finance rates come down they are out of the market. GE Money appears to have withdrawn from the car finance market permanently in that it has put off a large number of staff in both Australia and New Zealand and has announced to the market that it is exiting these areas of its business.

The new car industry will be feeling the ramifications of these decisions in that without readily available car finance, dealerships will find it difficult to reach new car sales targets. Unfortunately the Australian public, or at least those who have been buying new cars over the past 20 years have become used to being able to get 100% car finance on any new car purchase. New car finance is normally structured to include the car finance amount plus a residual or balloon amount which is paid by the borrower when he or she sells his or her car in 3 or 5 years time. The borrower makes monthly repayments which are enough to repay the car finance amount over the 5 year period and when he sells the car the price he achieves is generally sufficient to repay the balloon or residual amount.

It is likely that when buying a new car in 2009 you may well need to come up with a saved deposit. Not something people who have sought car finance in the past have had to worry about. The car finance will still include the car finance amount plus a residual but the general consensus is that if you are in the market for a new car then make sure you have some savings because the car finance is unlikely to be sufficient for you to complete the acquisition.

Mutual Fund Investment – A Good Investment Option

January 20, 2015 Posted by admin

Mutual fund investment includes the buying of the shares of stocks of the investment company by individual, institutional and corporate investors and the investing of the collective funds by the fund managers in a range of short and long term financial instruments and other kinds of securities. These collective funds from the purchase of shares of fund investments are also used and conceptualized to produce various securities like stocks or bonds. The portfolios of investment managers are diversified and investment strategies change in many ways but they are certainly spreading out their risks across a broad range of segments.

The popularity of this kind of funds has grown incredibly in past few years and the reason behind it is because of the simplicity, low start up investment is open to ordinary employees and small businessmen and also the growth and success of many mutual fund companies. Other aspects which influence public attention are the liquidity and affordability factors which mean you can start with only a minimum amount of investment and you have the option to dispose of these shares anytime you need.

While selecting, it is important to do your own research and appropriate diligence to know the relevant facts about the people behind the fund management company. It is very important to scan their company profile, how long they have been in this business, how much assets are they managing and what has been the performance of the funds they have invested in so far.

There are basically two kinds of mutual funds i.e. open ended and closed ended mutual funds. Open ended funds are those who offer their shares to the public without any restriction while the close ended funds only sell a certain number of shares.

Though there are the common risk factors in mutual fund investments, it still is a reasonable option as part of your personal financial retirement planning when compared with the low interest rates offered by banks which is not sufficient to carry out inflationary burden. Mutual fund investment can raise and multiply if your principal investment along with interest and dividends are reinvested and your money is compounded. If this formula is personalized, you will be amazed as the kind of tax protected money would be waiting for you at retirement time.

You can study and learn to build up analytical skills and talent which is necessary in observing the mutual fund movement through the internet. You can look for the help of a financial professional who is well grounded about the topics of mutual funds.

While making your estimation and analysis, it is very important to base it on the mutual funds’ yearly financial statements, latest brochures, prospectus and reports and from all these main documents you can recognize if the funds are doing well. There are many examples of scams and failures in this business so it is always worthwhile that you take the necessary steps to protect yourself when you are participating in a mutual fund investment. So, study all your alternatives and spread out your investments in the top mutual funds!

Finance – General Overview

January 20, 2015 Posted by admin

Finance is a generally applied term for more than a couple of things. The term finance applies to the commercial activity of providing funds and capital; also it is that branch of economics that studies the management of money and other assets. If one were to round up the different definitions into one, finance can be defined as the management of funds and capitals required by a business activity.

Management of Finance
Management of finance has developed into a specialized branch within management since long ago. Managing finance involves dealing with optimizing allocation of funds to various activities either by borrowing or by mobilizing from internal resources. The word optimizing in finance may strike an odd note but it means taking intelligently structured steps at minimizing the cost of financing while simultaneously attempting to maximize the profits out of the employed finance.

Finance Governs Most of the Activities
A poor finance management will immediately show as deteriorating conditions in the procurement, production and sales as it touches all spheres of business activities. For this reason, a finance manager is expected to be very judicious in either mobilizing funds or allocating for expenses. Lee Iacocca, the most revered management guru, calls finance managers as ‘bean counters’ who look at the expense part with rather pessimistic view. Unlike the sales managers, who would like to invest in future by product development, finance managers are rather skeptic of financing a project whose benefits lie in the future. Finance management governs the future outcome too.

Finance in Small Business
For most small business owners there is not a clear distinction between personal finance and business finance often leading to cross utility of funds. Lenders, either future or present, don’t look at this with a soft corner. But resisting the tendency for such utilities may dampen ones zeal temporarily but sure brings the much needed discipline which is the foundation of all future progresses.

Financing a business can often be perilous if not approached with caution. Although bad management is commonly given as the reason businesses fail, inadequate or ill-timed financing comes a very close second. Whether you’re starting a business or expanding one, sufficient ready capital is essential. But it is not enough to simply have sufficient financing; knowledge and planning are required to manage it well. These qualities ensure that you will avoid common mistakes like securing the wrong type of financing, miscalculating the amount required, or underestimating the cost of borrowing money.

Small businesses can finance their needs from either internal resources, friends or from banks and private lenders. The less you finance from outside lenders the more it ignites the profitability. This is why, perhaps, Bob Hope famously said, “A bank is a place that will lend you money if you can prove that you don’t need it.”

Mutual Funds-Long term investment

January 12, 2015 Posted by admin

Investors who are looking investment with long term prospective in mind, mutual funds are the best option of all the investment products present in the financial market. After all nobody likes to invest in those plans which involve more risk and less surety of large returns. Your future goals cannot be achieved with just saving your hard earned money in a saving account of your nearby bank.
You have to be aware of the fact that the way inflation is increasing, the money you have saved today will be very less in next twenty years. So to resist the inflation rate, investment should be as such where you get more return with less investment. These funds fit best in this choice.
While making investment, make your goal first. Your plan for investing for children education, pension, home buying or building asset, everything must be clear in your mind. Having this strategy, you will be able to choose the best plan that suits your category.
The more your investment period, say 15 to 20 years, you returns will be high accordingly. These trustworthy funds are affordable and you can start your monthly investment with few amount of money.
Direct equity investment can lead you to major loss. During highs and lows of market, equity based investment are largely affected. Choose the top performing investment fund and remain in your fund because in the long run you are bound to make profit.
These long term beneficial funds are diversified. This means that the money you have invested in a particular mutual fund gets diversified into various companies and due to this diversification; your fund won’t be influenced if some of the companies are not performing well.
Price of these funds commonly doesn’t change. Investment in top most companies of different sectors is possible only in mutual funds. Charges on these investment funds is very low, majority of the mutual funds has charges below two percent. This gives investors to include more mutual funds to their portfolio.
Mutual funds are very liquid funds which gives facility for the investors to exit from the investment at any time. Moreover there is fund manager who just look your funds regularly without paying any kind of fee.
Therefore if you want large growth investment, go for these funds. Fetching million, billion and trillion monetary gains in mutual funds is not a dream anymore. Invest with planning in mutual funds and one day you will be able to fulfill your dreams.

How to do Mutual Fund Analysis

January 11, 2015 Posted by admin

More than 80 million people in the United States of America have invested their hard earned money in equity markets and mutual funds. They invest their money with the assistance of professional analyst whose daily job is to analyze the mutual funds market and help the investors for investing in best funds.

The funds market is so huge based on the number of people who participate and the number of people who gain out of it and the exchange of money that it is imperative that one analyses it before entering it.

The right kind of fund analysis will allow you to gain a far better interest rate then you would have ever got if your money were to just idle away in a savings account. The fund analysis will allow you to be able to analysis the right scheme for you based on your personal goals and the amount that you want to gain and how long you want to remain invested.

Although one does need to be careful about the fund market as it looks good enough on paper but might not be so in reality. If the analysis is not done professionally and diligently with good attention given to the details, then one might also stand to lose their hard earned money.

There in comes the case of fund analysis so that you are able to get the very best by sifting through the pile of “>latest mutual funds and selecting the right ones. Do not get taken in by the words of a salesperson and invest in the very first mutual fund shown to you.

The key to the “>mutual fund analysis is to realize this base concept that not all mutual funds have been created equal and therefore the yield that they will ultimately provide you with will also be different.

Look Before You Leap A Guide to Choosing Mutual Funds

January 10, 2015 Posted by admin

Mutual funds are usually considered to be a risky venture. But that risk only comes when unwise decisions are made. The fault often lies in shoddy research, which leads to ignorance and assumptions. It isn’t a simple matter, choosing where to put your money. You need to make sensible decisions – and for that you need to make sure that you have all of your facts straight. The best way to do that is to research. But what do you look for? The first thing to check is how the fund functions. Some mutual funds companies invest in small and medium-cap stocks while others prefer large-caps. Know which company invests where and you’ll be closer to knowing how it performs. Another thing to look at is how well is has performed in the past, It might not show how well it will perform in the future, but at least you know that if there are very great ups and downs in their investment choices. You’re better off choosing a steady fund, not a very volatile one. This is where you need to pay attention to who heads the fund. If there has been a recent change in who makes the decisions, then you might want to wait and watch their decision making and its effects before you sign up.

Size also matters – if the fund is too large, it might have assets that are sitting idle. If the fund is too small, it might easily go belly-up because there are too few investors. Choose a fund that is not too large but is still established long enough to be known about in the market. This neatly leads to the matter of fees. Whether or not you make a profit, you’ll end up paying your fees. This is why you need to make sure that it doesn’t eat into your pocket. If the firm’s turnover rate is high, you’ll find that it’ll eat into your fees. The turnover rate is how frequently the firm trades – that is, how many times it buys and sells stocks. Trading incurs taxes, which you’ll end up paying for. Keep that in mind.

You need to look at how the fund works and more important, whether the working suits your needs. Undoubtedly, every firm offers you the option of a systematic investment plan – look at how viable an option that is for you. After all, it might be better than investing a lump sum and then seeing the firm close down. These are just a few things to look at before you agree to invest in a firm.

How you can Get Instant Auto Financing

January 10, 2015 Posted by admin

The best way to Get Instant Auto Financing

These days getting practically any car whether new or used, an individual needs auto finance. Previously car loan was not obtainable for the average individual generating it challenging for him or her to possess his dream or new automobiles on the marketplace. But nowadays modern automobile financing provides numerous selections of car loan for different income group of individuals.

Instant car financing is going up truly swiftly with different nations today in which loans may be applied and additionally accepted from the comfort and ease of your home at internet portals of on-line car finance businesses.

These types of world wide web providers are preferred for their speedy service and convenience supplied. The method of instant auto financing is quick and efficient as it entails very small paper work. It works out to become price effective for the customer or borrower in the same giving numerous lender choices. Instant auto financing delivers you to compare numerous interest rate choices obtainable from numerous lenders to you and choose on the most effective rate that fits your automobile loan requirements saving your difficult earned money.

Just one application on the internet will help you acquire a number of quotes from reputed loan companies helping you evaluation and select the right one from the ease and comfort of your pc.It serves as the most effective alternative for people who’ve less than great credit or negative credit.

Looking and attempting to get the very best instant car financing is effortless for folks with poor or zero credit. The approach is extremely rapid and entails much much less paper work and in distinctive circumstances, free of charge from credit report checks also. Just about all you will need to total is complete an on-line automobile loan application form to drive your brand new dream automobile to your house.

There are many reputed on the internet auto financing organizations that provide car loans at fantastic interest rates; you can appear for such companies utilizing well-known search engines like Bing and Google.

The fantastic factor about an on the internet vehicle loan business like this really is that you do not must visit a physical finance company location. You typically complete the whole application at home by giving your fundamental car financing application info, including employment information, residence address and income information etc. At times for those who have damaged credit you may need to fill out an application at a few different internet web sites to locate the best deal.

The most essential factor that a finance company considers is your salary and debt to income ratio. If you do not make adequate cash to deal with your monthly overhead, in the lenders eyes you possibly won’t spend back their loan. This really is typically 1 of the primary causes why folks get turned down when applying for auto financing online. Particularly if your credit is fair and your debt to income ratio isn’t in line using the banks recommendations, you’ll be able to nonetheless have a problem locating a loan.

Guide for Proper Mutual Fund Investing

January 10, 2015 Posted by admin

Mutual fund investing requires complete information about the behavior of the market and the terms and conditions involved in the method of investing.

Mutual fund investing is the best way to make optimum profits by investing the hard-earned money. This method is in demand these days, as it provides maximum profits in the form of returns. However, the period of investment is always long. Mutual fund investing pattern has some of merits and demerits. Thus, you have to be aware of both positive as well as negative aspects before investing in mutual funds.

Knowledge related to the risk involved in this kind of investing may help the investor to plan and take care about the future requirements. As the investing period in the mutual fund investing method is long, it carries the equal weight of risk. Thus, it is important for the investor to plan the financial activities well in advance to the actual task of investing the capital. These are strategies related to the future requirements and finding the sources for the same.

Apart from this, it is essential to acquire the accurate information about the details of the method of investing. In order to obtain the right valid information, initially, there is a need to look for a reputed consultant or a fund management company. A leading fund management company or a popular investing advisor may be the best source for knowing the formalities related to mutual fund investing.

Moreover, these agencies may also enable the investor to get the right idea about the number of years that the investment is to be made. This decision requires proper research related to the present circumstances in the market.

The investor also needs to have a proper understanding about the maximum risk levels involved in Mutual Fund Investing method and have to predetermine the level of risk that he is willing to take. All these aspects require proper knowledge about the behavior of the market.

This information may be available from many sources such as the fund management company, individual finance advisor and even from Internet, where one can lot of information related to the subject.