Posts Tagged ‘mutual fund’

Mutual Fund Education

Posted October 29, 2008 by Bernz

By Tom

Mutual Funds are ran by mutual fund managers that group money together and invest in stocks or bonds as a group. Mutual funds are the best way to quickly and easily diversify your portfolio. Fund managers carefully choose stocks or bonds to maintain a 4-5 percent return on the entire portfolio of stocks that is in the fund. A single stock may return that or may not. Investing in several stocks evens out the return and reduces the ups and downs that an individual stock may take.  Also bond interest rates fluctuate and having many bonds together being bought and sold and maturing at different dates makes investing in the volatile bond market much easier because someone else is making sure that your money is getting reinvested and that the best bonds are being chosen.  Investing mutual funds makes that whole confusing process a lot easier. Fund managers have the time and are paid to do the research necessary to find stocks and bonds that are appropriate to their fund.

(more…)


Posted in Mutual Funds | 2 Comments »

7 Things you need to know before you invest in a Mutual Fund

Posted October 12, 2008 by Bernz

1) Know what you will use the money for. List your goals and determine if they are short or long-term. By doing this you have an easier time making other investment decisions.

checklist12) Determine your risk level. Think about whether you’ll lose sleep over worrying about the possibility of loosing your principal or the uncertainty of a fluctuating market.

3) Consider whether or not you can do without the money you’ll be putting in your investment and how long you are willing to leave it untouched. This of course depends on your goals. Plus, the longer you have a mutual fund the more you’ll incur fees and other costs.

4) Account for sales charges and fees. The costs of having your mutual fund professionally managed eats into your profits. Avoid mutual funds that charge front-end or load fees. These are expenses deducted from your initial investment that will have an impact on your returns.

5) Choose a particular fund style. Mutual funds are categorized into three: growth, value, and blend. Growth stocks are shares in companies which are generating profit at a face rate. Value stocks are shares in companies who may be experiencing rough financial times, and they’re bought at a cheaper price for that reason. Blended funds are a combination of growth and value stocks.

(more…)

Posted in Mutual Funds | No Comments »

Fund Vocabulary. Demystifying important investing terms

Posted October 11, 2008 by Bernz

Now that you’re familiar with mutual funds, you’ll want to get comfortable with some of the common terms used when dealing with them.

novice-investing1As a reminder, a mutual fund is a large compilation of individual stocks.

Stocks – Shares a company sells to fund future business growth. When you purchase a share of stock, you own a fraction of the company.

Diversification – Different kinds of stocks: growth and value, as well as stock representing large, small, and mid caps.

Money manager/portfolio manager – A person or team of people who decide what stock to purchase, sell, and hold.

Index funds –Funds not managed by a financial professional. Instead these funds track existing marketing indexes such as the Dow Jones Industrial Average and Standard & Poors 500 Stock Index. Note: Index funds traditionally out-perform managed mutual funds because investors don’t have to pay fees and other costs that reduce earnings.

The Dow Jones Index – An index composed of thirty stocks.

Standard & Poors Index – is made up of 500 stocks of big companies

(more…)

Posted in Investing Basics | No Comments »


Disclaimer:

All the articles and content written here on Invesmint.com is for general information only and based solely on the authors personal opinions and discretion. It was not and should not be a substitute for professional advice. Visitors of this site (Invesmint.com) are encouraged to seek appropriate professional advice before acting upon the content or information from this site. Again, the content of this website is not a source for professional advice.

INVESMINT.COM hereby excludes liability for any claims, losses, demands, or damages of any kind whatsoever with regard to any information, content, or services provided at our web site, including but not limited to direct, indirect, incidental, or consequential loss or damages, compensatory damages, loss of profits, or data, or otherwise.