Posts Tagged: ‘Mutual Funds’

Tips to Discovering the Best Performing Mutual Funds

May 12, 2015 Posted by admin

You can diversify your portfolio by adding the best performing mutual funds [], which are groups of stocks instead of individual stocks. Another good thing is that the professional fund manager who assorts these companies in which you make investment is dependant on the performance of your fund. Mutual funds are problematic because money is deducted from the value of the fund to pay for its own management. Your income through your investment generation would be seriously affected due to this. It is extremely advisable to check out the various types of fee that are charged by a mutual fund company before investing even in the best of funds.

Morningstar and Mutual Funds have become synonymous with one another.If you want information on the best performing mutual funds this web site is a good place to start. The site provides its users with a lot of free helpful data about the top performing mutual funds, and it divides them into groups that you can browse through and pick the fund or funds that are right for you. You will see these categories for the best performing mutual funds written on the left side of the website.

I also use MSN’s Money website to gather data about the best-performing mutual funds. Like Morningstar, the website gives you helpful information about best performing mutual funds, yet it’s the Expert Picks part that has a lot of meaning. Mutual fund research is created exceedingly better by allowing you to assess a professional mutual fund chooser as he analyzes a mutual fund portfolio in right then and there.

Lastly, you can get information about the best performing mutual funds and sector mutual funds from the brokerage house that holds your account. Whilst it might appear to be easy to see, a lot of the times, internet brokerages give a lot of information to their customers that gets overlooked. Many brokerage houses have websites one can explore. There one can receive suggestions or advice on the services they provide.

Top 10 Mutual Funds in India

April 19, 2015 Posted by admin

y taking care of the feature ‘all investments are subject to market risks’, people have gone crazy for more and more investments. There is a lot said, in India on the business TV and channels, in the newspapers and everywhere. With different kinds of mutual funds available in the markets, people are enjoying their investments. They say some of the best possible investments in markets are available in a country like India. With so many options available for investing, a novice investor may find it a bit confusing as to which mutual fund is the best suited for investing. The fact is all these different kinds of mutual funds offer a perfect platform for the investors to simply pool the cash with a predefined objective of investment. Infact all these different kinds of investments have emerged just to suit the different objectives of investments.

Investing in best mutual funds in India is simple if you keep a note of finest 10 of them!

1.Gold Funds- considered to be one of the safest investments, these gold funds are a boon to invest in to. Surely the investments in to Gold Funds are focused with one single asset, the Gold. As per the gold prices in markets the units of gold funds shift accordingly.

2.Opportunities Funds-compared to other mutual funds in india, these are a bit different. Opportunities Funds include investment strategies like market timing, events, distress and arbitrage.

3.Close Ended- with a structure based mutual fund like this one, you get a chance to invest as per a specified period of maturity like 5 to 7 years. Investors can exit from these investments by selling back the units.

4.Open Ended- This is one of the commonly practiced mutual fund investments in India wherein the investor can invest or execute in available schemes anytime. There is nothing like an upper limit for the number of shares, investors and funds’ size.

5.Interval schemes- if you wish to combine features of open ended and closed ended funds, the interval schemes are a perfect choice. Here the units can easily be traded on stock exchange.

6.Equity mutual funds-these are one of the common investments that are classified as per nature wherein the fund’s structure differs for different schemes. With equity you can invest in to mid-cap, small-cap, sector-specific and tax-saving funds.

7.Debt mutual funds- are you willing to invest in to guilt funds, income or liquid funds or short term schemes or debt papers? The debt funds are for you!

8.Balance funds- do you wish to invest in to something that combines equity and a debt? Go ahead for the balance funds!

9.Growth schemes- also popular by the name equity schemes, the growth schemes aim to offer capital appreciation within a time period.

10.Income schemes- for availing regular income the investors can go ahead to invest in to these income schemes.

Indian Stock Market Situation, Stock Tips and Mutual Funds

April 15, 2015 Posted by admin

Do you think political upheavals, natural calamities, and global economic turbulence affect a country’s stock market performance? Yes it is! Investors’ spirits indeed get dampened. It is more of selling rather than buying that rule the scenario leading to fall of the indices and increased volatility. The Indian stock market has been facing a similar situation. It was only during the first week of the announcement of the Union Budget that the markets seemed to witness a positive stride only to be dampened soon by earthquake in Japan, the Gaddafi issue leading to oil price rise, and more related events. So, the Indian stock market is again swinging in the pendulum. If you are too confused about how to proceed forward investing in the Indian stock market, worry not. Get stock tips and suggestions from market experts serving via brokerage portals.

Do not just blindly follow stock tips published at many an online platform; you will rather get the more confused. It will be wise on your part to get registered at a brokerage portal that has maintained a rapport in the market of providing investment solutions beyond the satisfaction levels. Superlative investment services and tailor made stock tips are what the market experts offer to all clients serving via such portals. No matter whether you want to invest in an NSE or BSE stock or want to know about the top performing mutual funds of India and other diverse investment options, you can always expect to receive the right guidance from these experts. So, get registered and start availing superlative services and see your money multiply like never before.

The Japanese quake did dictate the trading trends of the NSE and BSE stock market. Both the sensex and nifty exhibited weak performance, creating a panicky situation yet again. The worst affected are the novice investors who are hardly aware about the tide.
Given such a situation, the Indian stock market is going to be subdued for the short term and mixed results may follow till the mid of the year, as per fresh predictions from market experts. The second part of the year will see the NSE and BSE stock market performing up to the expectation levels of the investors at large. With inflation is on its way down, positive announcements made for the Union Budget, tightening cycle that RBI had initiated, and more such positive news, the Indian stock market in the long run will exhibit good growth if not the best.

Rather than investing in many an NSE and BSE stock, people are getting more and more attracted towards investing in mutual funds of India as people feel the risk factor in this segment. Though it is again indirectly investing in the Indian stock market in the name of mutual funds of India, the drive is indeed good news for the asset management companies. Get updated with news related to this segment so that you know where to invest right.

Mutual Funds and Long-Term Investing

April 5, 2015 Posted by admin

There was a time when you invested your money in Certificates of Deposit at your local bank and left the money there until your retirement. Banks offered safety and a minimal return on investments.

Then, along came mutual funds…

During the go-go 1990s, mutual funds were the rage, and returns of 25% per year were not uncommon. Without any real knowledge of how mutual funds worked, employees plowed billions of dollars into their 401(k) plans and funded those plans with mutual funds. At the time, many funds were springing up and specialized in a variety of investing disciplines. It wasn’t long before funds that specialized in narrowly focused industries were common and many fared very well. Of course, during a spectacular bull run investors became accustomed, if not spoiled, with the fantastic returns they received. Who can forget Peter Lynch and the fantastic returns on the Fidelity Magellan Fund?

Somewhere along the line people forgot that the market does not stay in a perpetual bullish state. In my opinion, most unsuspecting investors can be forgiven for this oversight. Our last bull market was one of the longest in recent history, though it was funded by deficit spending at a national and personal level. Like all good things, it came to an untimely end as in recent years stock prices have skidded and home values have plummeted precipitously.

But a lot of folks stuck with their funds and their 401(k) plans…

The problem with most open ended funds is that they can only buy stocks, and cannot sell short. The end result for the investor is that unless the market goes up he or she does not make money. As I mentioned earlier, many funds evolved with tightly focused investment objectives and if the particular sector in which a given mutual fund was forced to invest did not do well, there was nothing that the fund manager could do besides mitigate the level of overall loss. Investing in perpetually long positions definitely has its disadvantages. Of course, during a recession the market as a whole tends to decline, so it does not particularly matter what investment sector you invested in, the results will be disappointing. This makes investing over the long term, or using the “buy and hold” strategy difficult to implement.

So now the mutual fund industry finds itself in a bit of a quandary. During the rip roaring bull market of the last decade mutual funds were the investment of choice, especially for the uninitiated. Now that the market has cooled off some, which is an understatement, the allure of funds have waned. Worse yet, there are millions of investors with money in their 401(k) plans invested solely in mutual funds. Though we have had a nice run up in the last year, the long-term prospects, at the present, are not so encouraging. Worse yet, many employees jumped out of their funds, especially in 401(k) plans, at or near the bottom of the last market correction. They stand little chance of returning to the original high account balances they once enjoyed. The lesson is a simple one, during bull markets mutual funds are a wonderful investment and very profitable. When the market is correcting, however, funds can be a distinct liability because they are, by law, required to invest in only long positions. If you are holding funds during a market correction your options are very limited; you can stay in the fund or you can opt out. There are no provisions in fund investing that allow you to effectively take advantage of a correcting market.

In my opinion, the recent volatility in the markets negates the old adage, “buy and hold investments.” I suppose over a 50 year time frame this investment strategy may pay dividends, but currently the average holding time in mutual funds is just under three years. Needless to say, a great many people have been burned of late in mutual funds. Absent a rip roaring bull market, the mutual fund industry must develop a mechanism to protect investors in down markets. If not, they risk losing a great number of investors. Already the number of mutual fund investors has declined nearly 40%. The industry needs to become more nimble to survive in volatile market conditions which punish investors severely.

Tips on Investing in Mutual Funds

December 18, 2014 Posted by admin

Building an investment portfolio has many benefits. Mainly, you will earn money. You could invest for retirement or invest to build a discretionary portfolio. There are several ways to invest. You can invest in stocks, bonds, commodities, etc. If you’re aren’t interested in spending a lot of time researching and investing, mutual funds may be a good alternative for you.

A mutual fund is when many investors pool their money together and that money is invested into many investments such as stocks, bonds, commodities, etc. Instead of having to buy individual investments and having to do the research, you can get many different investments at once for instant diversification. Diversifying among many different investments is important, and it’s done for you if you invest in mutual funds.

They are easier because you don’t need to learn how to do research, spend hours researching many different investments, and spend the time it takes to buy stocks or other securities at the right time. You should be familiar with investing and understand this type of collective investment, but it’s much easier than learning all you need to know about stocks, bonds, commodities, derivatives, foreign currency, and other investments.

There is a lot less you have to do which ultimately saves time. If you invested in 6 to 10 different stocks, you should spend at least a couple hours each week researching your investments. With funds like this, you don’t have to worry about what individual stocks are doing. If you invest in index mutual funds, you can expect to earn about an average of what the stock market is earning without having to worry about doing time-consuming tasks.

There are two main types of mutual funds, no load and load mutual funds. Both types charge a small fee to allow you to invest in the fund. However, a load mutual fund adds extra fees because they are often considered premium funds that can earn you more.

No one can guarantee you will earn more money. You can take a risk that a load fund will earn you more money after the fees, or you can invest in index no load funds and save more money on fees. It is also cheaper to do this than to work with a professional investment advisor.

In order to build a diversified portfolio, you need to have a sizable amount of money to get started. When you invest in a mutual fund, you can often get started with as little as $1,000.

If you want to invest for retirement, you can invest in these stock or bond funds through a 401K or IRA. These will give you retirement tax advantages. With a 401K, you get to invest your money tax-free until retirement. You will pay taxes on all the money that you withdraw after retirement. It works similarly with an IRA, but with a Roth IRA, you can contribute taxed money and don’t have to pay any taxes during retirement, even on the earnings.

Types of Mutual Funds

November 20, 2014 Posted by admin

Over the years a diverse range of mutual funds has emerged to meet a very broad range of investment objectives among the investing public.

A fund’s prime investment goals are stated in the fund’s offering prospectus and generally cover the degree of safety or risk that is acceptable, whether income or capital gain is the prime objective, and the main types of securities in the fund’s investment portfolio. From their differing investment objectives, the following main types of funds emerge:

1. Bond Funds – whose main investment goals are income and safety of principal. Investment by such funds is primarily in good quality, high yielding government and corporate debt securities, some high-yield preferred and common shares and mortgages. Their degree of volatility
is related to the degree of interest rate fluctuation.
Example: Altimira Bond Fund.

2. Mortgage Funds – investment goals are similar to those of bond funds, and unit values are affected by similar economic factors. Investors hold a share in a group of mortgages (much as bond fund investors hold a share in a group of bonds) rather than holding title to a particular
Example: Royfund Mortgage Fund.

3. Money Market Funds – became very popular with investors during the 1980s and are now the largest category of mutual fund. The objective of this type of fund is to achieve a high level of income and liquidity through investment in short-term money market instruments such as treasury bills, commercial paper and short-term government bonds. These funds have limited opportunity for capital gain: many funds keep the net asset value at a set level (e.g. $10) by distributing monthly income to unitholders in cash or new units.
Example: Bolton Tremblay Money Fund.

4. Balanced Funds – whose main investment objectives are a mixture of safety, income and capital appreciation. These objectives are sought through a balanced portfolio of fixed income securities for stability and income, plus a broadly diversified group of common stock holdings for diversification, dividend income and growth potential. The balance between defensive and aggressive security holdings is rarely 50-50; rather, managers of balanced funds adjust the percentage of each part of the total portfolio in accordance with current market conditions and future expectations.
Example: Investors Mutual of Canada Ltd.

5. Common Stock or Equity Funds – These funds are primarily invested in common shares. Short-term notes or other fixed income securities may be purchased from time to time in limited amounts for diversification, income and liquidity, but the bulk of assets are in common shares in the pursuit of capital gain. Because common share prices are typically more volatile than other types of securities, prices of equity funds tend to fluctuate more widely than those funds previously mentioned. Some equity funds invest in a variety of overseas markets as well as Canada and the United States. These funds invest in markets perceived to offer the greatest opportunity for
growth on a global basis.

As with common stocks, equity funds range greatly in degree of risk and growth potential. Some are broadly diversified, heavily invested in blue-chip, income-yielding common shares and may, therefore, be classified at the conservative end of the equity fund scale.

Many common stock funds adopt a slightly more aggressive investment stance as, for example, Industrial Growth Fund which invests principally in securities with an objective of above average growth of capital. Other equity funds are of a more speculative nature, aggressively seeking capital gains at the sacrifice of some safety and income. Example: United Venture Fund Ltd.

6. Specialty Funds – are those which concentrate portfolio holdings on shares of a group of companies in one industry, in one geographic location or in one segment of the capital market. While still offering some diversification in their portfolios, they are more vulnerable to swings in the industry in whose shares they specialize or, if they have a portfolio of foreign securities, in currency values. Many, but not all, tend to be more speculative than most types of common share funds.
Example: AGF Japan Fund Ltd.

7. Global Funds – seek gains and diversification by investing in markets that offer the best prospects, regardless of location. Some global funds are invest in bonds, others are equity funds and still others are money market funds.
Example: Templeton Emerging Markets Fund.

8. Dividend Funds – are those that invest primarily in high quality preferred and sometimes common shares of taxable corporations in order to obtain maximum dividend income.
Example: Allied Dividend Fund.

9. Real Estate Funds – are those which invest in income-producing real property in order to achieve long-term growth through capital appreciation and the reinvestment of income.
Example: Investors Real Property Fund.

10. Ethical Funds – Investment decisions are guided by moral criteria. These criteria vary from fund to fund. One ethical fund may avoid investing in companies that profit from tobacco, alcohol or armaments, while another fund may invest according to certain religious beliefs.
Example: VanCity Investment Services Ltd.’s Ethical Growth Fund.

Smart Online Investment in Mutual Funds

October 30, 2014 Posted by admin

In the age of speed and the era of internet, when everything that you ever wanted to know and anything you ever wanted to purchase is available online, then why not investments?

Yes! Time is precious in our everyday busy lives. When shuttling between work and home takes much time on road and the rest of the day is packed between meetings and deadlines. In those few precious moments of peace that you get or steal, if you have to manage your money then it would be tough to personally go to an investment bank. It would be more than demanding to first get an understanding of investment types and policies and then get down to understand market, figure out ways to crack the technicalities, read the policy documents, zero down priorities in terms of lock in period, liquidity, etc. and all of it in person. Thus to simplify things, to save time and encourage people to invest in mutual funds, online investment was made possible.

Most of the investment banks have recognized that as people have got comfortable with online transactions, so has the investor. Earlier investment in mutual funds was a tall task that involved a lot of paper work, but with the increased popularity and usage of online mutual fund investment it has become evident that offline is pass� and online application is a shorter and a simpler process. All it requires is filling of a form, which can be submitted right away, hence no more standing in long queues. And since online transfer of funds is just a quick click job; transferred and commercial transactions happen in a jiffy.

When investing in mutual funds, it’s essential to know various plans, schemes and its features as well as the terms involved, that’s exactly why all this is clearly mentioned on the websites of almost all the Asset Management Companies (AMCs). Also, to further assist the user with their risk profiling websites of various investment companies like, Reliance Mutual seek some basic answers from the investor to get back to them with solutions. To facilitate smooth flow for your experience of online investment in mutual funds, there is everything from basic information of product offered, to market updates, to latest NAVs, scheme information, application form etc. available online. Also there are several tools and calculators, which further assist the investors to calculate their goals, SIP and estimate of corpus as well. With so much information accessible and that too all the time, investment in mutual funds is no longer a tedious process.

And having invested online in mutual funds, the investor is assigned a transaction pin and has a dashboard of his investments, where it can track the performance & transactions, check for additional information, dividends etc.

Should You Invest in Mutual Funds

October 26, 2014 Posted by admin

Bill Gates probably doesn’t invest in mutual funds (funds), maybe because most of his money is tied up in Microsoft stock. Warren Buffet made his billions by managing investments, so he does not need their help, either. But, if you have money to invest and don’t really know how to invest and manage an investment portfolio, you should consider investing in mutual funds. Millions of average investors do.

Keep in mind that mutual funds are designed for folks who want professional investment management at a moderate cost. These are not short-term investments, but rather are for people with longer-term investment horizons. Once you have cash reserves in the bank for short term needs like emergencies, you are ready to invest.

Should you invest in mutual funds? If one or more of the following apply to you, you probably should.

If you want to accumulate a nest egg for retirement, give these investment packages consideration. For example, if you have a typical 401k plan at work, most of the investment options available to you are mutual funds.

If you decide to open a traditional IRA or Roth IRA, consider going with a major mutual fund family. This will give you a wide array of investment options, from safe and conservative to aggressive and growth oriented.

If you want to start slow and learn how to invest as you go, you should invest in mutual funds. For example, you can set things up so that $100 a month automatically flows from your checking account to a couple of mutual funds within a fund family.

If you want to invest in stocks and/or bonds, but don’t know how to invest in them, join the crowd and do it the sensible and easy way with funds.

If you have a lump sum of money to invest from a retirement plan, a CD that matured or from an inheritance, look no further. For example, if you leave your job where you had money in a 401k, you can move it and avoid taxes and penalties with a direct rollover to a mutual fund family.

If you are retired and want to earn a higher return with relative safety, try bond funds in addition to money market funds. When you want to receive a monthly income, they will send you the amount you specify.

If you want an investment in real estate, oil & gas, or gold the easy way, invest in mutual funds and let them deal with the details.

It doesn’t matter if you are young or old, rich or of modest means, conservative or aggressive as an investor. You need an investment portfolio that contains a variety of investment types. Unless you really know how to invest and can manage your own stocks, bonds, and money market securities�you should invest in mutual funds.

Finally, if you don’t know much about investing�you’re probably a red-blooded American. As a financial planner I worked with folks from all walks of life. Few knew how to invest on their own, so I often recommended mutual funds.

The Basics to Know about Mutual Funds.

October 23, 2014 Posted by admin

Not paying attention the economic rise or fall, the broker is likely mostly to tell the investors to still invest. Depending on the time, he may say during the crisis, that there’s a tendency to go back up or while the economic augmentation, he can speak about a good basis to start.

Can we treat such a method to be right? Do we have to say “buy, hold, and prosper” or “buy, hold, and lose”? It’s like a resistance between Broker and Challenge. A simple case study will prove which method is more profitable. The investment broker will buy and hold a random mutual fund, and the investors will buy and sell the fund based on market conditions.

They buy the AIM Basic Value C (GTVCX) fund at the beginning of 2005 for the price of 30 dollars. The challenge will conclude on October 5th 2009.

Let’s examine a simple example in order to find out what way is more beneficial. The Broker purchases and holds a mutual fund, but the investors are going to buy and vendor the fund based on the market situation. As an example they may buy funds at 2006 for 50 dollars, The challenge will make the conclusion on October 5th 2009.

The broker saves during bad and good time. The investor made up his mind to utilize one strategy. Whether the fund falls more than some percent below its 350 days average, he will definitely sell it. But if it rises above 350 days average, the latter will buy and hold it.

When the broker loses 42.6% of his portfolio to the purchase and hold plan, the investor who is more flexible obtained a 10% augmentation for the same gap of time. Do we encounter often with such results? Yes. it happens. Regardless the lost transaction fees, the investor having bought during the augmentation and vendored during the fall came out eventually.

But does it imply that people who buy mutual funds have to actively run their portfolio? Yes and no. If the manager had to rule it actively with hedging strategies for failure markets – that would help. Otherwise, a bad manager may get wasting results no matter what the economic climate is.

The Investor of Actions

A good number of investors prefer to run their funds on full wings. But of course you need knowledge and a practical experience. Nevertheless, the money return is going to compensate all the time invested.

The rest methods, except that we discussed here, rely mostly on indicators. No matter what technique an investor utilizes or he has someone else to run his capital.

The comprehension of the present market will help to make appropriate decisions.

Benefits of Mutual Funds

September 20, 2014 Posted by admin

Of the many different ways in which you can invest your money, mutual funds are one of the more popular choices among both individuals and financial planning firms. Unlike stocks and bonds, they offer a greater variability in terms of the amount of money you can invest and the ways in which you can withdraw and reinvest your funds. This makes them a good fit for many individuals just beginning to explore their investment options, as well as those who want to have more control over their portfolio.

What are Mutual Funds?

Mutual funds are basically an investment co-op. Several people put their money into a single investment portfolio underneath the direction of a fund manager or other investment professional. The return is set an annual fixed fee, so that most of the risk and potential for substantial returns falls on the fund manager or firm. To the consumer, this is much less like an investment in the stock market and more like a bank account with a standard interest rate, even though their money is technically invested in a number of different ventures.

Why Mutual Funds are Popular

Many people prefer mutual funds because their money is under the direction of a financial manager or investment professional who has just as much of a vested interest in the outcome as they do. This offers a great alternative to a broker, who typically takes home a commission rather than a percentage of the money you make. In fact, most brokers have no accountability for an investment gone bad.

In mutual funds, however, your financial manager makes money only if the portfolio does well. And while you typically get a fixed return rate – and therefore never see the benefits of an incredible return – you can feel safe knowing that your money is working hard with little risk.

Mutual funds also come with a greater range of options than what an individual gets with stocks or bonds. For example, because several people are investing simultaneously, many mutual funds are open for investment at as little as $50. When set against the thousands of dollars typically necessary to get started in the stock market, this means that more people can access a smart financial plan.

You can also usually withdraw your funds faster and more conveniently. Although there may be fees associated with an early withdrawal of your investment, they are usually smaller than what you can expect from a different type of investment, and you’ll see the cash in hand in as little as three business days.

Are Mutual Funds Right for You?

Still, despite these advantages, mutual funds aren’t right for everyone. They are lower risk than what many investors are looking for, and many people actually need the rigor of an investment they aren’t allowed to touch for several years in order to be successful at investing.

Before you make the decision to purchase mutual funds, it’s best to discuss your options with your financial advisor or investment firm.