http://www.finanzine.com/feed/ http://www.finanzine.com/ Free updates and insight tips on financial markets. Wed, 15 Jul 2009 08:40:09 +0200 Wed, 15 Jul 2009 08:40:09 +0200 http://www.finanzine.com/mutual-funds/Reading-Through-A-Mutual-Fund-Prospectus http://www.finanzine.com/mutual-funds/Reading-Through-A-Mutual-Fund-Prospectus I admit reading through a mutual fund prospectus is like sitting through a root canal. Ok maybe not necessarily a root canal, but it is a somewhat daunting task that can leave you, John Doe investor reeling and frustrated enough to throw the thing away. Hold your horses, because with a little assistance, you can actually get some fruits of wisdom from a mutual fund prospectus that can assist you in investing in them. After all, with the current financial situation it is of utmost importance that you are informed with what it is exactly you are investing in. And that is exactly what a mutual fund prospectus does. Before you invest in this type of investment instrument you are entitled to get a free copy of a mutual fund prospectus to look over and to help you decide if you want to go with that investment company or not. This document will give you an idea as to what kind of securities the account holds, who the group managing it is, as well as their goals and objectives. It is basically your guide to the fees and expenses, investment strategies and other important information about the administration of said investment instrument. Upon reading a mutual fund prospectus look through their investment policy. This will lay out the parameters in which account managers will choose the investments. Basically, it points out the risks you can take when you buy into the investment and at the same time you can compare it with your own financial goals to see if they match. The next thing to check out in a mutual fund prospectus is the people who will manage the account. It will tell you whether the account is run by one person or a group of people. There are advantages to having more than one person manage an account foremost of which is continuity—should one manager leave, there will still be others who will pick up the slack. At the same time you will also know just how much the account managers are getting out of it. A no loads account may look good in theory until you see that it is heavily loaded with management fees instead. This brings me to another thing you should look out for in a mutual fund prospectus: the account’s fee schedule. There are typically two types of fees: shareholder fees and the fund’s expenses. As an investor you get charged the shareholder fees in the form of transaction charges. The 2nd type of fees on the other hand charges the account directly regardless of whether or not it is making money—basically it can lower the value of your investment. After looking at the account’s fee schedule look at the turnover rate next. It’s basically the number of times the entire portfolio has been bought and sold. A high portfolio turnover not only results in high capital gains penalties but also higher transaction costs, both of which are passed unto you. On the other hand, a low portfolio turnover avoids most of these charges and is seen as a long term prospect. However, also look at this section in the context of the investment’s rate of return. A low cost account may have one of the lowest rates of returns in the industry and it may not be worth it to invest your money in. The 10-year performance history can come in handy. You can see their performance for the past 10-years and can see if they have outperformed or underperformed similar accounts. While most, if not all, mutual fund prospectus are quite long and carries a lot of jargon don’t skip any sections. The information they carry can help you in your investment decisions. Should you have any questions concerning the mutual fund prospectus do contact the investment company so that you can get what you need for a successful financial investment. About the author. Rick Goldfeller is a successful underground Financial Analyst who has been advising and coaching individuals for many years. Rick now decided to share his knowledge through this site, Finanzine.com. You can sign up for his free weekly newsletter and learn how to attract Wealth and Financial Freedom. Fri, 26 Jun 2009 10:38:57 +0200 http://www.finanzine.com/mutual-funds/mutual-funds3 http://www.finanzine.com/mutual-funds/mutual-funds3 I’ve been writing a lot about surviving and taking advantage of the economic crisis over the past few weeks. It goes without saying that there are several ways to thrive in the time of recession and more ways are discovered everyday. Opportunity is at every corner and everyone has several investment options. You can still have steady wealth growth despite the current economy and some might even say that they’re getting richer because of the situation. No, this doesn’t mean that you need to pull dirty tricks, but you need to stay informed. If you’ve been doing this for a long time then you should know that you shouldn’t depend on good returns from stocks every year. A lot of people didn’t expect a huge recession ten years ago and look at where stocks are now. This is a different case for mutual funds. Despite times like this, a lot of the mutual funds out there are still secure, because of the essential variety of it. Diversified mutual funds are cool because they carry different kinds of stocks. They’re essentially secure because the stocks that are doing well cover up for the ones doing poorly. If you’re looking for more income, then you should go the way of a specialty stock fund. The premise is that even if stocks and bands are going under, some do well. The catch is that you need to get wise and you have to keep yourself well-informed. There are still smart investments out there in the form of natural resources and basic materials. Other than oil, aluminum, iron and other resources can potentially soar. While we’re on the topic of metals, precious metals can also do you good. As of the moment, gold prices are high and will probably go much higher within the year alone. That’s just how it is with gold. The big problem with it however, is that the prices are very erratic. I’ve written a previous article on the subject of precious metals, but suffice to say, their prices will only go up in the coming years. Mutual funds that hold interests in other countries should also be doing pretty good. A lot of the countries seem to prosper even while the US financial crisis is going on. There are mutual funds that invest in up and comers like Mexico, China and India, and also in prominent places like Japan and some countries in Europe. You should also strongly consider getting into a money market fund. They are practically safe and their value remains to be stable. When interests rates go up they give out higher interest in dividends. There are several mutual funds out there and, as always you need to consider which one you should go into. Diversified is good since you get to put your cash in a lot of places. Specialties (the non-diversified) need some experience and some knowledge of the current trend in the market. Yes, we all need to be wise in mutual funds of any sort, but basically the two I just pointed out can be labeled safe (for the former) and risky (for the latter). And remember, if you want to make some real money in mutual funds, you need to do this for a long time and not just liquidate your cash in one go. In the future you’ll just end up thinking that what you did was a bad move and you should have put more money. About the author. Rick Goldfeller is a successful underground Financial Analyst who has been advising and coaching individuals for many years. Rick now decided to share his knowledge through this site, Finanzine.com. You can sign up for his free weekly newsletter and learn how to attract Wealth and Financial Freedom. Mon, 18 May 2009 09:39:44 +0200 http://www.finanzine.com/mutual-funds/Low-Risk-Mutual-Funds http://www.finanzine.com/mutual-funds/Low-Risk-Mutual-Funds Some people don’t want to spend their money because they’re afraid of losing it. It’s common knowledge that if you spend money you lose it and some people will be content with this reasoning. It’s understandable that people don’t want their cash risked, so here are some tips to help you find low risk mutual funds to help you feel more comfortable about your investments and feel that sense of security to put you at ease. If you really want to have lesser risks then you shouldn’t aim to high. I’m not saying that you should aim small, but there’s this safety zone that you need to stay in. Don’t look for ways to win the market over, look for a market that’s consistent. You want to make sure that you get considerably moderate returns and keep it at that level. Let’s say you’re new at this. Low risk mutual funds would obviously be ones with a good track record. Take time to study their background. Don’t just listen to what organizations say about themselves, dig up some dirt or at the very least, know what their competitors say about them. Most importantly look for them on the news, this will tell you if they’re really well established. Given that low risk mutual funds are the ones that are well established, it also comes to mind that they’re expensive. They could come with high yearly fees that will badly hurt your income and can often prove to be counter productive. Rather than receive 12% for a given year, they could charge 2% for yearly expenses and fees and you’d end up with 10%. If you find that the fund charges "loads" or sales charges, then you should avoid it entirely since the load is a percentage taken from the money you invest with. When this happens, the value of your investment will be less and it will drastically lessen the money you get back. In the long run, you’ll notice that avoiding loads will save a lot of money and you’ll be able to make the most out of your investments. Now, low risk mutual funds are also the ones that have a steady record of money returned. This will offer you the safety zone returns that I was telling you about. An index fund will usually put you in the safety zones since they basically track the market at a passive pace. You’ll find that there will be other people making more than you with 25% returned, but you’ll rarely, and possibly never, find yourself with negative returns since you’ll average at 9-12% returns. A really good investment strategy is to diversify. This is also a quality of low risk mutual funds. You want to invest in different kinds of companies in different sectors. Diversification will grant you the steady flow of returns that you were looking for. Low risk mutual funds are exactly what they’re called. You might find that they are the best investment since they will rarely let you down, but they won’t give huge returns either. You will remain in that safety zone and you’ll never need to worry about a thing. About the author. Rick Goldfeller is a successful underground Financial Analyst who has been advising and coaching individuals for many years. Rick now decided to share his knowledge through this site, Finanzine.com. You can sign up for his free weekly newsletter and learn how to attract Wealth and Financial Freedom. Fri, 6 Mar 2009 06:49:43 +0100 http://www.finanzine.com/mutual-funds/drawbacks-of-mutual-fund-investments http://www.finanzine.com/mutual-funds/drawbacks-of-mutual-fund-investments If you are just new in the world of investments, you might hear suggestions and advices to invest in mutual funds. They say that this kind of investment is less risky than investing directly in stocks. Actually, the advice you’ve received is good and is the most common suggestion also. Generally, mutual funds are really meant for the amateur investors out there. But you have to remember that every kind of investment vehicle has its own negative sides or what they call pitfalls. One of the drawbacks of mutual fund investments is the dependence of the funds on the performance of the fund manager. As we all know, when you invest in mutual funds, the company provides managers that will take charge of your money. Unlike investing in stocks where you have to deal with it yourself, in the said funds you don’t have to do that. You have to know about the trade to be able to guard your own investment. Actually the drawbacks of mutual fund are sometimes neglected by the investors. They only concentrate on the profits or gains they will be realizing without knowing these things. So, to avoid possible losses in the future, you have to be responsible and determine the drawbacks of mutual fund before leaping into the trade. Before you go investing your money, you might as well do some research about the company. The most important thing is to find out about the expertise and experience of the manager. Better choose a company with an established manager so you’ll know whether your investment is in good hands. In the first place, you invested your hard-earned money to earn income. Another of the drawbacks of mutual fund is the responsibility to make diversification on your portfolio. You are the one in-charged of this task. So, it is a must to know how the industry works. You must do your homework on what financial instruments to invest in. If you want to invest in stock funds, you have to know what companies are doing well in the stock market. Even if there is a manager, you still have a part in the investment process. That’s why you must know where to put your investment. Don’t focus on only one sector. As much as possible, go for risky as well as less-risky investments to attain balance. Knowing what the drawbacks of mutual fund are will give you a clear idea whether investing is really for you. Moreover, you should also be aware of the management fees you’ll be paying. Because there is manager who will be managing your fund, you will be paying for their services. Every time you buy and sell a financial instrument, you will be paying for the stated fees. You must inquire regarding these fees from the fund company. The drawbacks of mutual fund investments is not that really alarming. Some can be avoided while some are just manageable. However, you must still be knowledgeable about it in order to come up with the right decision. About the author. Rick Goldfeller is a successful underground Financial Analyst who has been advising and coaching individuals for many years. Rick now decided to share his knowledge through this site, Finanzine.com. You can sign up for his free weekly newsletter and learn how to attract Wealth and Financial Freedom. Mon, 26 Jan 2009 07:02:37 +0100 http://www.finanzine.com/mutual-funds/money-market-mutual-funds http://www.finanzine.com/mutual-funds/money-market-mutual-funds Do you have excess cash and don’t know what to do about it? Well, why don’t you invest it? If you will just use the money for something else like taking a shopping spree, you’ll be losing the opportunity to generate more cash. It’s better to look ahead for the future than just live for today. One way of assuring for a brighter future is by making investments. However, there are different kinds of investment vehicles available. If you’re a newbie in the field, I advise you to invest in money market mutual funds. Actually, putting your money in mutual funds is the best thing you should do. Mutual funds are the most appropriate investment for amateurs. The main objective in making investments is to make big returns. It’s a means of reaching a healthy financial life. There are people who became financially successful just because they made wise investments. If they can do it, why don’t you do it, too? You can start by making even a small investment. So why would you choose money market mutual funds over others? First, investing in mutual funds doesn’t require huge capital outlay. You can open an account with just $500 in hand. Isn’t it great? Unlike other investments which you need to have big capital like in stocks, bonds and other types of mutual funds. You don’t even need a financial adviser regarding your investment for the risk involved here is lower. You won’t be worrying much whether you will incur any losses. Instead of putting your money in savings account in a bank, try investing it in the said fund. Actually, it’s like putting your cash in a savings account but the benefits are more. Savings account have lower rate of return. Mostly, banks only give a return of about 1% while money market mutual funds have an average return of 4.5 %. The rate of return can make a huge difference. After how many years, you can earn big profits if you will invest in the said fund. After the fund has accumulated big profits, you can start thinking about going into bigger investments. With a bigger capital in hand, you can invest in stocks if you want too. The only concern in stocks is the law of leverage. If you will be lucky enough, it can really be profitable. But you can also suffer big losses if you will be unlucky. That’s why before you go make some investment decisions; you should make some thorough research on where you want to invest. Another thing about money market mutual funds is in terms of liquidity. You can easily take back the money you invested if you want to. In times of emergency, you can always remove it and use in whatever purpose you intend. Not like some other investments where you can’t easily pull out your money. The liquidity feature of the money market mutual funds has attracted some investors. Investing in the said fund is becoming popular because you will not only generate profits but it’s considered a kind of safe investment too. So better run to a local bank and invest immediately! About the author. Rick Goldfeller is a successful underground Financial Analyst who has been advising and coaching individuals for many years. Rick now decided to share his knowledge through this site, Finanzine.com. You can sign up for his free weekly newsletter and learn how to attract Wealth and Financial Freedom. Fri, 16 Jan 2009 04:37:40 +0100 http://www.finanzine.com/mutual-funds/bond-mutual-funds http://www.finanzine.com/mutual-funds/bond-mutual-funds The question of where to invest your money is mind-bogging. With the recent downfall of some established financial institutions, you’re just too cautious of investing schemes. However, all of us want to prepare for the future and one of the easiest ways of making fast money is through handful of investments. If you are quite determined in making investment at this time, I suggest for bond mutual funds. You’ve probably heard of all sorts of negative feedback on the financial world. The economic downturn, higher inflation and the stock market falling can make a big impact on your investment decision. Putting your money in banks will only give you small returns. Interest rates in savings accounts are too low and income will be lower for you. Meanwhile, trading in the stock market is too risky. That’s why it’s safer to invest in mutual funds. This kind of investment is good especially to first-time investors. If you are just a newbie in the world of investments, better start with safe investments. Mutual funds are exactly what you’ve been looking for, particularly bond mutual funds. Actually, there are different types of mutual funds available in the market. You just have to choose one which can protect you from losses and in the end realize a gain. In times of unstable financial condition, we all want regular income. If you have lots of money, it’s OK to gamble in order to make huge income. But when you’re intention in making an investment is to generate a steady source of income, better look for a secured one. The best thing about bond mutual funds is the regular income derived from interest payment. Assurance of an income is positive and the said funds are more liquid than bonds alone. The said funds invest in both debt securities and bonds thus ensuring asset protection for the capital invested. Like any other kinds of mutual funds, Net Asset Value (NAV) is also pertinent which is considered as the value of a share of a fund. The price you’ll be paying when you purchase is according to the NAV. Upon selling the fund, the NAV is what you’ll get as value in return. Basically, there are different kinds of bond mutual funds you can choose from. There’s this corporate bond fund. It is an investment in debt securities which are issued by the government in the form of treasury notes, treasury bonds and treasury bills. Another type is called corporate bond fund which invests in the corporations’ debt securities. The difference between government bond fund and corporate bond fund is in terms of income and risk. The latter is more risky but it pays out much higher than the first one. One more type is called municipal bond fund which includes investment in securities issued by the local government or the state. Of course, you want to know the reasons why you should consider bond mutual funds. Well, for one, there is stability in the said funds. Two, you can also diversify your portfolio and your investments are more liquid than bonds. Lastly, there is less risks involved than investing in stocks. So, start your investment now! About the author. Rick Goldfeller is a successful underground Financial Analyst who has been advising and coaching individuals for many years. Rick now decided to share his knowledge through this site, Finanzine.com. You can sign up for his free weekly newsletter and learn how to attract Wealth and Financial Freedom. Thu, 18 Dec 2008 08:22:41 +0100 http://www.finanzine.com/mutual-funds/mutual-fund-returns http://www.finanzine.com/mutual-funds/mutual-fund-returns Mutual fund is a more popular mode of investment among people. If you have extra money and want to start building your wealth, you can try it. You’ve probably heard of or read on how much mutual fund returns you can receive. You can generate income by just investing in mutual funds. The best thing about this kind of investment is you’ll be earnings money without working too hard. No sweat at all. You can still do your day job. It’s like hitting bird with one stone. You’ll be earning from your investments as well as receive monthly salary. Unlike other investments where you will be stuck in the monitor screen of your computer, investment in mutual funds is very convenient. What you will just do is to buy mutual funds from banks, brokers, agents and the like. You will entrust your money to the mentioned financial institutions. What makes it attractive is the presence of fund managers. Every fund has its own manager. The fund manager is in-charged in the investment process. Investments can either be in stocks, shares, and other financial instruments. You can gain mutual fund returns in variety of ways. You should be aware of how you can gain profits. In the first place, it’s what you are after. Who doesn’t want to have any profits in their investments? One way of making a profit is in the form of dividends. If the manager has invested in shares of stocks, you are entitled to dividends. You’ll be receiving dividends if the company where the shares are invested has declared dividends to its stockholders. Dividends are fraction of the earnings paid to the stockholders of record. However not all mutual funds are entitled to dividends. You’ll be lucky if your mutual fund plan includes investment which yields dividends. Another way of making mutual fund returns is capital appreciation. If you will decide to sell some of your stocks, you can do so. In the process you will earn a lot especially if the selling price is way higher than the purchase price. Fast money right? Selling your shares is the speedy way of gaining earnings. Capital appreciation can occur if the value of your shares increases. That’s why it’s better if you will inquire about the performance of the fund manager. Before contemplating investing in a particular mutual fund company, make a research. It all depends on the manager where to invest. Mangers should have a vast experience in the trade so as to make investors happy. Lastly, mutual fund returns can be attained through capital gain distribution. There is gain when the manager will sell shares included in the portfolio at a gain. The gain will be then distributed to the investors. It is either in the form of cash or additional stocks. If you will choose the later, that would be classified as reinvestment. It’s really a basic requirement to know how to make profits in every investment you make. You will be able to determine whether you’re investment is making earnings or not. About the author. Rick Goldfeller is a successful underground Financial Analyst who has been advising and coaching individuals for many years. Rick now decided to share his knowledge through this site, Finanzine.com. You can sign up for his free weekly newsletter and learn how to attract Wealth and Financial Freedom. Thu, 11 Dec 2008 08:42:24 +0100 http://www.finanzine.com/mutual-funds/mutual-fund http://www.finanzine.com/mutual-funds/mutual-fund Investing in mutual funds is a good way of handling your money. It is one way of saving for the future. There are lots of uncertainties ahead of you and its better to be prepared. Having investments is also the best mode of building wealth. Mutual fund investments can make you richer than what you are at the moment. Your money will be doubled, tripled or even go as high as you can never imagine. Unlike some regular investments like trading in securities, you will not directly handle your investments. A mutual fund is an investment company who do the trading for their investors. Instead of you trading yourself, you will just have to invest money in funds. What the company will be doing is pool all the money coming from the investments. There is a fund manager who is in-charge in making investments. Actually, the investment will depend on the fund manager. If the manager has well-managed the fund, you will surely gain profits. But you don’t have to worry about the fund manager. Probably you will doubt whether the fund manager is doing exactly what you are wishing for. Basically, fund managers are experts in the field. The company wouldn’t want to jeopardize the investors’ money. They invest in stocks, money market instruments and other financial securities. It is your responsibility to research about the investment company you want to invest in. Make sure to go to a reputable investment company. Usually, there are write-ups on magazines about the best mutual funds around. You can even check on the net. Try to visit different company websites in order to compare their performance. The good thing in the investment is the diversification. You have the option to diversify your investment. You can invest in stocks and other securities. Mutual fund companies however make charges on your investments. If you want high-risk investment, a higher fee is collected from you. Bear in mind that high risk investments doesn’t necessarily mean high returns. For example, in the stock market, prices usually fluctuate on the daily basis. If you invest on a particular share, there is no assurance of an income. You can never tell whether the price will go up or down. You cannot blame the company if you cannot get any profit because stock prices are volatile. In investing you should know the types of mutual funds. There are three types: Class A, Class B and Class C. Investing in Class a stock is advisable if you want to hold your investment for 2 years or more. On the other hand, Class B stocks are good if you want to hold the stocks for a longer period of time. While Class c stocks are the best option for short term investment. The value of your shares depends on the performance of your securities. There are lots of mutual fund companies available in the public. A great help in choosing the best performing is to check rankings. Like for example Lipper Leader Fund Ratings which assesses mutual funds according to five criteria: total return, tax efficiency, expense, preservation and consistent return. It’s really your choice in the end that will matter. Just select the best mutual fund company which can contribute to your financial success. About the author. Rick Goldfeller is a successful underground Financial Analyst who has been advising and coaching individuals for many years. Rick now decided to share his knowledge through this site, Finanzine.com. You can sign up for his free weekly newsletter and learn how to attract Wealth and Financial Freedom. Fri, 28 Nov 2008 07:36:59 +0100 http://www.finanzine.com/mutual-funds/mutual-funds2 http://www.finanzine.com/mutual-funds/mutual-funds2 People nowadays are very particular about financial matters. When it comes to money, they want to make sure they have investments. Investments can be made in different ways. Other people are investing their hard-earned money on real estate. They believe in the power of real state to generate a lot of profits. Many are purchasing land which appreciates in value in the long-run. Another kind of investment like dealing with stocks is also profitable. When you know the right strategies and techniques in the stock market, you’ll surely find your fortune in stocks. People are finding ways on how to produce more money and be financially independent. They want to look at many possibilities of good investments. There is another type of investment for you to explore. You’ve probably heard of mutual funds. Investing in mutual funds is also considered as a wise way of putting your money into good use. If you don’t know how to manage your investments yourself, this kind of investment is really for you. Mutual fund is a form of collective investment scheme wherein a professional manages the fund. The money invested by the investors will be pooled into one and the fund manager will invest it in stocks, money-market instruments, bonds and other kinds of securities. Majority of the funds’ portfolios are under the supervision of a professional. These professional have vast experienced in the investment field. They will appropriately invest the money into securities which will greatly benefit the investors. The performance of the manager is very well a determinant on the outcome of the fund. If the manager has managed well the fund, everybody will surely be happy and wealthy. That’s why it’s imperative for the investors to check the performance of the manager. You should determine the manager’s capability in the handling the fund. The investment portfolio is usually diversified, meaning it should not concentrate on one investment alone. A portion of the fund can be on high-risk investments while others are invested on low-risk securities. The manager typically invest large amount of money on companies with outstanding financial performance. The task of the professional is essential in the growth of the fund. The mutual fund company do research and study the trend in the financial market in order to know where to invest. Every company listed in the stock market is thoroughly researched. Its annual report is also carefully studied. There are many kinds of mutual funds like open-ended, equity and exchange-traded and others. There are some which are invested for a particular industry. Like for example, a Pharma fund which is invested only in pharmaceutical companies. Investment in mutual fund doesn’t necessarily require you to shed big amount of money. Even in small amount, you can now invest; you just have the option to invest every month if you want to. You can invest your hard-earned money in whatever means you know. Investing in mutual fund is one way. Just remember that your money is in the hands of a professional. They will manage it efficiently and effectively for you to reap great benefits. About the author. Rick Goldfeller is a successful underground Financial Analyst who has been advising and coaching individuals for many years. Rick now decided to share his knowledge through this site, Finanzine.com. You can sign up for his free weekly newsletter and learn how to attract Wealth and Financial Freedom. Tue, 28 Oct 2008 05:43:02 +0100 http://www.finanzine.com/mutual-funds/mutual-fund-investing http://www.finanzine.com/mutual-funds/mutual-fund-investing If you’ve got plenty of money just lying around the house or rotting in banks with pathetic interest, in such excess amounts that you’ll still be able to live comfortably for the rest of your life (or at least you’ve got plenty to spare), then you should consider putting each dollar to work. You don’t tell it go out and look for a job like you would your husband or wife, rather you invest it in a median that’ll make even more cash for you. One option that you can do that doesn’t need you to be a rocket scientist or really intelligent, for that matter, is called mutual fund investing. Hold on, doesn’t having anything to do with the stock market impose big risk and an inclination towards failure for its investors, especially for the inexperienced beefheads that don’t have a clue as to what they’re doing, you ask? True, very true for those coming to play the game without prior knowledge and experience whatsoever. But that isn’t the case 100% of the time, because there exists a particular investment that doesn’t require you to be financial adviser savvy or anywhere near that level of thinking. Best part is that it doesn’t even require you to have that much experience with the stock market, coz there are professionals handling everything for you. Here the pros in charge are fund managers and brokers – these guys know everything there is to the market, how it ticks, the events, when to act, and make good use of their other analytical skills. The stocks tied up in the fund are kept up to date with all significant information, making mutual fund investing a median that can prove to be very profitable. Before you get excited, here’s something that’s important for you to know: the professional fees charged by these experts can end up costing an investor a lot, so to avoid that from happening to you, best you look for no penalty mutual funds, as to minimize the fees. As I’ve said earlier, you don’t need that much knowledge or experience with mutual fund investing. Which is true, but, having some info on how things work will eliminate the chances of you being kept in the dark. Meaning you won’t be wondering why things are working like this or that, and why you’re paying for certain fees. So as to not look like an idiot or ignorant, I strongly recommend you get as much as input as you can – where, you ask? There are numerous sources, one being the newspaper (under the financial pages), magazines, and even the internet. With the cognition you’ve gained, you’ll be able to narrow down your search for mutual funds, picking out one that works better with you. Lastly, before you decide to sign up with a company and trust them with your money, you’ll need to do a little background check on them as well. This includes their company profile, history, track record, and other details that’ll establish their credibility. About the author. Rick Goldfeller is a successful underground Financial Analyst who has been advising and coaching individuals for many years. Rick now decided to share his knowledge through this site, Finanzine.com. You can sign up for his free weekly newsletter and learn how to attract Wealth and Financial Freedom. Thu, 2 Oct 2008 09:04:50 +0200 http://www.finanzine.com/mutual-funds/stocks http://www.finanzine.com/mutual-funds/stocks No two things can ever be exactly the same. There is always at least something that one object has that’s different from another, no matter how similar they may be. Even identical twins differences between them, it’s just that they aren’t that noticeable at first glance. Anyways, some people out there wonder what the difference between stocks and mutual funds are, and would love to see a comparison between the two. That’s why I’ve taken the liberty of writing this article, for the benefit of those who do have no idea what they are – interested in knowing what they are? Read this: what really makes them “unique” as compared to one another is the kind of investments you put your money into. When you say stocks, it usually means that you’re putting it in a singular type of investment only. But with mutual funds, you’re putting it in several kinds, which include a variety of the following: bonds, stocks, and many other money-market investments. That brings up the 2nd fact that separates them from one another, which is the risk involved. Investing in mutual funds means that you’ll be taking a lower risk as compared to stocks, why? Because of the diversification of this particular investment – it just doesn’t stick to one type, but to many. With stocks, expect that you’ll be taking higher risks because it isn’t that diversified. Having said that, it brings up the 3rd fact that differentiates the two, which is: returns. In the stock market, there’s “belief” or “law” that’s “implemented” here, which goes: the higher the risk, the higher the return. What that means, when applying it for the sake of distinguishing the two mentioned, stocks do tend to fluctuate higher, which could mean larger returns. The 4th deviation between the two types of investment is the “management” their placed under. With mutual funds, your investment is placed under the careful care of professional investment managers. These are the guys making the decisions on your behalf, but do so by investing in “medians” that’ll most likely make a profit. That in turn lowers the risk you take, not to mention the burden of deciding where to put your cash. Stocks, on the other hand, don’t come with a team of professionals to watch over your investment; you only have yourself to rely on. That can be very risky if you’re new to this kinda business, and lead you into the pits of financial ruin too. 5th and last difference is efficiency – mutual funds have larger sums of money to invest with, usually come hand-in-hand trade-commission free, not to mention the contacts they have at the brokerage, which makes them more efficient. Now I ask you this: which of the two would you invest in? Well that depends entirely on you, my furry friend. Being a newbie to a place as wild as the money market can be risky given that you don’t know how things works yet, so it’d be best if you’d pool your money in mutual funds. As you make your way up the “ladder”, you might wanna consider placing your cash in individual stocks, which can mean more profit for you, taken that you’ve gained enough experience. Or you could try investing in both, if you’d like. About the author. Rick Goldfeller is a successful underground Financial Analyst who has been advising and coaching individuals for many years. Rick now decided to share his knowledge through this site, Finanzine.com. You can sign up for his free weekly newsletter and learn how to attract Wealth and Financial Freedom. Mon, 15 Sep 2008 07:54:45 +0200 http://www.finanzine.com/mutual-funds/mutual-funds1 http://www.finanzine.com/mutual-funds/mutual-funds1 The stock market is a wild and crazy world to be in, and is definitely not for a place for amateurs to be playing about. In this jungle, investing in the wrong places can get you beaten, eaten, and spat out like gum. But what if you can get a professional to place you in a favorable position? Like take care of all your investing concerns, as to where you should be putting your money, the returns you’ll be expecting to receive, and when you should do it? Well for the jungle, you’d need somebody like Tarzan to keep you safe, but when it comes to this money market, you’d need mutual funds – why is this so, you ask? Well because this type of investment is managed by professionals, guys that know everything about the entire market, guys known as fund managers. They understand that you know nothing about how things work (no offense), so they take the liberty of getting things done on your behalf. What that means for you is that there’s no need for you to be watching over your investment, they’ll be doing it for you. They’ll also be pooling your money into what’s hot, not in “what’s not”, which is a major advantage considering your ignorance, friend. Getting that kind of management service elsewhere would equate to you paying large sums of cash, something you most definitely won’t want. Mutual funds have another advantage, which is its liquidity – here you’ll be able to convert your financial investments into cash instantly. To be more specific, you can sell your shares anytime of the day the stock market is open. Try comparing that to the other “hard-to-liquidate” investments, which can takes weeks to move. In case of emergency purposes and other instances where you’ll need cash quick, they suck! Like pooling your dough into real estate, which is really hard to move, and can take months. Stocks with low trading volume also take time to liquidate. This is one of the many advantages you can reap from investing in mutual funds. One worth mentioning is the type of investments your “financial advisers” would be putting your money into – why? Because there are plenty! The diversification of mutual funds is vast, so to speak. They don’t stick with one type, but to many, that they may get the highest expected returns from each one. They’ll put your money into hundreds of stocks, bonds, and many other money markets out there. Try doing that in your own portfolio, and I can guarantee the following results: for that matter will result to ridiculously high trading fees. Second thing that can happen is you winding up in a mental facility, which is very much possible considering the fact that you’ll have to be monitoring all those stock positions. Last advantage would be the very low fees of mutual funds, since the experts running the show take advantage of the economies of scale. This is why this is becoming very popular nowadays. Thousands of people can make a living off this business; maybe it’s time for you join them. About the author. Rick Goldfeller is a successful underground Financial Analyst who has been advising and coaching individuals for many years. Rick now decided to share his knowledge through this site, Finanzine.com. You can sign up for his free weekly newsletter and learn how to attract Wealth and Financial Freedom. Mon, 8 Sep 2008 05:04:39 +0200 http://www.finanzine.com/mutual-funds/mutual-funds http://www.finanzine.com/mutual-funds/mutual-funds Almost everybody has the ambition to get rich without lifting a finger – that’s because there’s plenty of us out there that are driven by laziness and greed. We like to find ways for having our cash work for us, or apply the Law of Leverage, which is to multiply our efforts through others. A classic example of that would be an Egyptian Pharaoh having his slaves build infrastructure or gather the rice grains which he uses for sale/trade – he doesn’t do anything, but gets all the work done and gets richer and richer. You’re not a Pharaoh, so how do you get rich? Well one way would be putting your money in a median that can help you reach that particular financial goal. One “vehicle” that can get you there are mutual funds, how does this work? Simple: what you do is buy mutual funds from a mutual fund company or broker. From there, the company that you’ve entrusted your cash with invests it into a variety of short term investments, like the following: assets, bonds, stocks and securities. What happens next, if all does go well, is you receive dividends for each of the mutual funds you’ve purchased, which is your share of the profit made off it. Some people (many perhaps) find the whole process scary because they have no idea what to do first or feel that it’s too much risk to take. Fear not old friend, your investment is being managed by the company’s team of investment professionals – these guys know exactly what they’re doing and find the best ways possible to ensure that you make money. It’s like having a symbiotic relationship with them: if they do good, you do good, heck all of you do good. Usually an investment manager does the buying and selling on your behalf, making sure all goes in your favor. As the investments diversify, the risk of loss gets lower and lower, which is clearly what everybody wants. There are three types of mutual funds, the first being: equity funds – which is basically investing in common stocks. This is considered to be very risky, but it can also mean lots of money for you. The second type are the fixed income funds, which is a lot safer due to the fact that they’re basically government and corporate securities. Here you don’t take that much risk, which in some cases could mean that you don’t earn that much (as compared to investing in equity funds). Lastly, we have balanced mutual funds, which consists of stocks and bonds. This type of investment is the safest amongst the three stated here, but it also is the “slowest earner” of all. The discussion of the three kinds of mutual funds brings up an old saying: “no risk, no reward” - I forgot who said it, but I do know that it does apply to the basic “operating principle” of mutual funds. Important reminder: your shares can be sold back to the broker or to another customer at your will. If your interested in getting into this game, then I suggest you do more research about the different companies you could invest in. About the author. Rick Goldfeller is a successful underground Financial Analyst who has been advising and coaching individuals for many years. Rick now decided to share his knowledge through this site, Finanzine.com. You can sign up for his free weekly newsletter and learn how to attract Wealth and Financial Freedom.