Posts Tagged ‘mutual funds’

Is This the Market of a Lifetime?

Posted March 25, 2009 by Bernz

It’s difficult for even the best prognosticators to get a handle on the stock market these days. The massive recession-that-might-be-a-depression that has gripped much of the industrialized world has brutalized stock markets in the US and abroad. Pension funds, college funds and savings accounts have all been hard hit. Recently, CNBC’s Jim Cramer took a verbal beating from Jon Stewart about his inability to predict the crash.

lifetimestockThe Dow Jones Industrial Average has dropped to its lowest level in 12 years recently and continues to test that limit. But even with all of the warnings about the dangers of the market right now, some wise investors are in collection mode.

So, is there opportunity in the stock market right now or only grief and despair? Optimists point to the fact that all stocks are getting punished regardless of their fundamentals. That means that there are stocks that are currently undervalued lurking out there. The tricky part is finding the ones that will both weather the remainder of the recession and also do well when the markets turn around.

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Posted in Financial Education, Financial Goals, Index Funds, Investing Basics, Investing Strategies, Stock Market Investing, Stock Watch | 1 Comment »

Index Funds: What They Are And How They Perform

Posted February 15, 2009 by Bernz

Index funds are a type of mutual fund that combines a number of different stocks into a single stock market investment vehicle.  Instead of buying the individual stocks, you can buy shares of the fund.  That way you own a portion of many stocks instead of owning many shares of just one stock.

This type of ownership appeals to many investors who prefer to spread their risk over a number of stocks, but may not have the investment money that it  takes to buy a lot of stocks across a wide section of the market.

Of course, some people are critical of mutual funds since they typically yield less than individual stock portfolios.  This is largely due to the fees charged by most mutual funds.

Mutual Fund profits are decreased by the management fees.  Since the stocks in the funds are personally selected by the managers, the managers are well paid for their research and expertise.  But you can minimize those management fees by investing in index funds.

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Posted in Financial Education, Investing Strategies, Mutual Funds, Stock Market Investing | No Comments »

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.

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Need to start retirement planning? Consider investing in mutual funds

Posted October 13, 2008 by Bernz

Need to start retirement planning? Consider investing in mutual funds

If you’re new to investing and looking for a simple way to start funding your retirement, mutual funds could be the right choice for you. But before you make any rash moves, get the run down on what mutual funds are along with the pros and cons.

guide-for-top-mutual-funds-by-category-11First off, understand that mutual funds are huge collections of stocks and bonds that a group of people pool their money together to purchase. A financial management company invests the money on behalf of the group and each group member collects earnings through dividend or interest payments or capital gains.

There are several advantages of mutual funds. The most common are:

1) Investing in mutual funds is an easy way to get start investing. For example, you can start investing with as little as $25 to $100. And because the money is managed for you, you don’t have to learn a lot about investing before you get started. In other words you can learn as you go, save and potentially make money in the process. Here are some low cost mutual funds with monthly minimums to consider:

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