The Best Mutual Funds Most People Overlook

November 27, 2009 by  
Filed under Mutual Funds

Many people just want to own the best mutual funds they can find. They want the best stock fund and the best bond fund so they can relax and everything will be all right. Just in case the economy and markets get worse in the future, you might want to dig a little deeper.

The best bond fund for most people most of the time is of the low-cost intermediate variety… not too risky with decent dividends. The best stock fund would also be low-cost, and of the general diversified kind. If you just own one.

When inflation and/or a sluggish economy become a major issue, even the best mutual funds in the above popular categories are vulnerable. So, let’s look a little deeper into securities that could protect your assets and make you profits in bad times. The good news is that you don’t need to dig too far into specifics and pick your own individual securities like stocks or bonds. Just look for mutual funds that do that for you.

Inflation-protected securities are debt obligations or bonds, and are issued by the U.S. Treasury and government agencies. These securities automatically adjust their principal and interest payments in response to changes in the rate of inflation. Conventional fixed-interest-rate bonds do not; and inflation can erode the value of even the best bond fund that invests in conventional bonds.

On the equity side, most stocks are vulnerable to a slowing economy and/or higher inflation as well. Some stocks in special sectors can buck the trend. These are the areas that are often overlooked by the average investor.

Real estate and real estate stocks were on cruise control heading into the recession of 2008. Then they got crushed, at least in part because real estate became overvalued in a low-interest-rate, low inflation environment. Over the long term the real estate sector has traditionally been a steady performer. Don’t overlook it when prices are low.

In the past energy and natural resources stocks have benefited when inflation was a factor in a sluggish economy. Stagflation could happen again and send prices in this sector to the upside.

Basic materials and precious metals don’t always march to the same beat as the stock market in general, even though they have in recent times. Inflation, uncertainty and a lack of other attractive investment options can send aluminum, copper, gold and silver prices higher. Stock prices in this sector follow suite.

Never overlook foreign securities. They have become a major investment option for even the new investor. As they say, there’s always an investment opportunity somewhere… in some country or some specialty stock sector.

The best mutual funds when things get dicey are often the ones that specialize in the above areas many investors overlook. Tomorrow’s best bond fund could be one that specializes in inflation-protected securities. The best stock fund could be one that specializes in real estate, energy, basic materials, precious metals or foreign securities.

Broaden your horizons when uncertainty has others throwing in the towel in defeat. You will never know for certain where the next opportunities lie, so diversify into the often overlooked areas. In this way you can strengthen your defense and your offense as well. If you have other ideas, I’d like to here from you. I’m always looking for the best investments, too.

Can Hedge Funds Invest in Mutual Funds?

November 27, 2009 by  
Filed under Mutual Funds

Good question. But to answer it properly it is first necessary to understand the difference between hedge funds (HF) and mutual funds (MF). But of these investment options have similarities in that they both pool the investor’s money across a wide selections of investment opportunities. Hedge funds however usually limit their investors to large institutional types or wealthy investors and they are much riskier and are not covered by the extensive regulation that inhibits other type of funds.

While both of these funds hold stocks, mutual funds stick to investing in publicly traded stocks, but in case of hedge they have no such limitations and can usually buy into any type of investment that the fund manager thinks will generate a payoff for the investors. Also, because hedge funds often invest in private corporations, financial details are not generally available to the general public.

Other similarities and differences include the following:

• Both funds usually invest in bonds at a certain level, since bonds are safer, even though they have a lower return. Like with stocks, MFs invest in only government bonds while in case of other they use private loans to private corporations to accumulate profits for its investors.

• While mutual funds gauge their performance according to one of the major stock indexes (Dow Jones, S&P 500 or NASDAQ), but in case of later they shoot for absolute growth targets without considering the markets.

• Both funds claim to lower risk by spreading out investments across a broad range of securities and investments, since hedge have no real regulation they are able to invest in very high risk, high return investments.

Because of the general freedom that a hedge manager has over the investments that he can make he is free to invest in MFs. Because MFs have a lower return rate however, and expectations of the investors in the HFs are much higher than them, so the fund managers will generally not invest in them. If a certain MF shows a high, steady return, however, some fund managers do sometime take the plunge, at least until the MF’s rise levels out, and will dump some money into the mutual fund to reap the profits.

Compare Mutual Funds – Some Tips

November 27, 2009 by  
Filed under Mutual Funds

Mutual funds are investment instruments that can help you earn a high percentage of income by investing your money in diversified assets, stocks, bonds and other securities. With a plethora of mutual funds being offered consistently and with lot of advertising about how a particular mutual fund can really help you earn massive wealth, it may become difficult to choose the right fund for you among many mutual funds.

Let us take three mutual funds, an equity diversified fund, a balanced fund and a debt fun. Now the first one is mostly used for investing in equity market, with the ability to give higher than average rate of returns. Usually part track record is commonly used as a metric to evaluate the future performance of the mutual fund. However, you can never guarantee that just because a fund performance had worked well n the past, it will do so in the future. In the equity market, there is risk involved because a lot of things can happen, the financial condition of the country may be in doldrums, the fund manager may change, the market may go down etc. The balanced fund that has a 50-50 or 60-40 allocation in equity and debt is also susceptible to unpredictability. Debt funds used by conservative investors may ensure safety of the capital but you cannot expect high returns.

What you invest in is often your hard-earned money and you cannot afford to lose it. It can be a better idea to invest your money in 2-tier affiliate marketing, where you make money not just out of your efforts but also out of the income generated by people whom you recruit. Affiliate programs give you the best training so that you are armed with enough expertise to run your business.

Funds are not doubt safer than stock market, but it is still prone to risk. The investor does not have control over his decisions and is at the mercy of the fund manager. Also there are exit loads in investment, which means if you withdraw your money, you will have to part with some money as commission to the advisor. Compared to mutual funds, affiliate marketing is much safer than mutual funds. You are able to exercise control over your investment, and there is no entry or exist cost in affiliate marketing. So go for 2-tier affiliate marketing, because you can make a lot of money even with very low investment.

Best Performing Mutual Funds – How to Choose

November 27, 2009 by  
Filed under Mutual Funds

Mutual funds are among the best investment options that can give you attractive income over a period of time. With mutual funds, you are able to diversify your investments in the best manner possible, while reducing your risk, considerably.

You will not have to bear the headache of managing each and every fund, because the asset fund manager will decide in which prosperous sector, your investment should be allocated. There is good amount of leveraging of your investment, because the risk is minimized. No doubt, you should choose top performing mutual funds, if you want to make a good amount of money. Here are some factors that you need to look for:

1. Past record: Look at how the mutual fund has been performing over a period of years. Though the past records are not a guarantee of future performance, you will get an idea of the stability of the fund house.

2. Ranking: Refer to companies like Morningstar and Lipper Leader Fund Ratings which give stars and points on various mutual fund houses based on past performance, consistent returns, tax efficiency etc. Business periodicals can also give sufficient insights.

3. Board of advisory: The board of advisory comprising asset fund managers is the ones who are responsible for your fund performance. If they have a proven track record, there is not much to worry.

The best kind of mutual funds are equity linked tax saving schemes, equity diversified schemes for those who have risk appetite, balanced funds for those who are okay with moderate risk and debt funds for those who want to play safe. Though mutual funds are a preferred instrument for investment, they are by no means, risk-free.

Funds are also to be looked with a long-term horizon. If you want to have a source of income that gives better returns than this form of investment; guaranteed returns and that too, quickly, you should go for a very good business opportunity in the form of 2 tier affiliate marketing. This form of investment is in your control, unlike mutual funds, where you have no or very less control. Two-tier affiliate marketing gives you the ability to generate staggering amount of residual income and that too at brisk pace. So go ahead and make a conscious decision about how you want to benefit from your investment through affiliate marketing, a success principle that have made many people earn thousands of dollars every month.

Best Energy Mutual Funds

November 27, 2009 by  
Filed under Mutual Funds

Investing in energy is one of the strongest and safest bets in investment opportunities today, especially green energy. Green energy deals with new renewable and environmentally safe energy technologies, like solar or wind power. Here are the top five renewable energy companies on being traded today.

The New Alternative Fund is a very good long term fund that makes investments in companies regardless of their size and includes investments in companies’ world wide. New Alternative will only invest in a company that makes a positive impact on the environment and at least 25% of its investments are in companies ‘who specialize in renewable fuels.

PowerShares WilderHill Clean Energy Portfolio includes a portfolio of 36 stocks that are working in renewable energy, and using clean energy technology.

Winslow Green Energy Growth Fund is primarily in the United States and invests in American small cap growth companies. While Winslow does not invest in exclusively in alternative energy investments it does have a green approach to its investment style. Winslow may include companies that do not help the environment, but any company in its portfolio does not hurt the environment. Before they invest, fund managers at Winslow investigate the impact that company has on the environment and the company’s environmental impact as well as other facts.

Guinness Atkinson Alternative Energy Fund uses long term capital appreciation strategies to achieve its investor’s goals. Any company that receives more than half of its revenue from alternative energy technologies can be included in the fund. Use caution here, especially if you are a new investor. Because of this specialization, diversification is difficult and your risk is subsequently increased.

The Calvert Global Alternative Energy Fund is huge with more that $140 million in assets. The Calvert fund has a large number of foreign investments also and this can add a great deal of risk. Calvert is very aggressive in its investment strategies but this very aggressiveness, while increasing risk, also increases the possible gains. With more than 80% of it’s investments in the renewable energy sector, Calvert is not diversified either. This can be a large factor in your decision on whether or not to invest.

Investing in energy can generate a decent income. Because of the exploding growth in green energy and renewable fuels, adding shares from companies that deal in these new technologies can be a smart move. If you are investing in any mutual fund that specializes in energy however, you will want to measure how well that fund diversifies its investments. If the risk level is a major issue with you, invest in companies that, while they carry green energy stock, they also have investments in other sectors.

How Money Market Account Mutual Funds Work

November 27, 2009 by  
Filed under Mutual Funds

People who are interested in stock trading always look for schemes that give the assurance of low risk. Investing is an art that is aimed to bring in profits as nobody wants to end up in loss. Investing in mutual funds is considered to be one of safest ways to be free from the risk of loss as it assures return on investment. Trading pundits feel that one of the stock trading schemes that involve very low risks is money market mutual fund.

So what is a money market mutual fund? It is a kind of mutual fund laid down by the law so that investors can invest in securities that involve low risks. The money market mutual funds are not covered federally. The risk rate in this type of mutual fund is very low as compared to any other type of mutual fund and earn through dividends.

Money market funds only involve investing money in high quality short term investments. When you checkout the portfolio of these funds, you will understand that it includes low risk securities such as notice money, treasury bills, commercial documents of highly rated firms, government securities, certificate of deposits, etc.

The liquidity of these securities is high and it targets to maintain the Net Asset Value at a constant value. Money market fund is similar to the money kept as deposit in a bank. You can also make a check on your money-market fund and pay any amount of money just the way you do it at your bank.

Even though there is less chance of loss but there is a possibility that you may suffer from it. There are several risks involved such as the debtor will not stand in a position to pay the returns; the interest rate can increase and cause you to suffer loss if you are in a situation to sell it prior to the date of maturity. Moreover, there is a strong possibility that in the coming years if the inflation is high, your returns will not be of much value. This can happen if you are keeping an eye over your investment portfolio.

Risk is the last thing you want to get into when you are keen about investing. If you really looking for a foolproof way of making money online without even thinking about the loss, you can try two tier affiliate marketing. It is a type of online business that assures income on regular basis. Affiliate with an online merchant and make sub-affiliates and earn profits on every sale that you and your sub-affiliates make.

Here is the Definition of Mutual Funds

November 27, 2009 by  
Filed under Mutual Funds

Even though mutual funds have gained huge popularity in the recent times, most people have very minimal knowledge about it. Mutual fund is an investment instrument in which money from many people are pooled into stocks, bonds and other assets. The total holdings of the bonds and stocks are called an investment portfolio in which each investor owns a share of the company invested through a mutual fund.

These funds are used for investing in different types of things such as stocks securities, bonds and cash instruments. The investment company’s final goal is to meet the financial targets of each and every investor and earn money.

The investments are managed by fund manager who controls the fund and collect the investments and invests it into stocks, bonds or other assets in order to diversify the portfolio and making sure that there is very low risk involved and to attain best possible return on the investment for you.

The fund manager does complete analysis and studies the market trends prior to investing. Investors have the freedom to sell their shares whenever they want; however the return will be on the basis of the current market price of the different stocks and bonds that are present in the fund. Therefore, it is essential for the investors to have patience and wait till the market rises up prior to selling their shares in order to earn profit.

You can earn money from mutual funds by earning through dividends on stocks and also via interest on bonds. Your mutual fund asset manager or advisory board can sell off securities at a high price for you, when there is a profit.

There are plenty of advantages associated with investing in mutual funds. The funds are handled by experts and diversify your investments thereby minimizing the risk. Since mutual funds are liquid, they can be redeemed any time, with the exception of those which are close-ended funds.

You can find so many mutual funds to invest on. However, it is very necessary to read the offer document carefully and thoroughly before you go ahead and invest.

Even though funds are handled by experts, it does not guarantee that every time you will earn profit. If you are looking for a better way of earning regular profit, you should try two tier affiliate marketing. All you need to do is become an affiliate with an online merchant and introduce new affiliates and earn substantial every time when there is a sale.

So What Types of Mutual Funds Are There?

November 27, 2009 by  
Filed under Mutual Funds

Mutual funds help you raise money and earn very good returns on your investment by investing it across different securities and companies depending on the investment opportunity. Mutual funds are invested in diversified sectors of the economy depending upon the risk appetite of the investor. For instance, a pure growth equity fund invests in equity sectors like infrastructure, telecom, consumer durables etc. A debt fund invests in government bonds, short term instruments like commercial papers, debentures of companies etc.

There are several types of mutual funds. Here are they:

Equity/Growth Fund: In this form of mutual fund, the investment is done only in equities also known as stocks. The longer a stock is retained, the more will be the profit. The net asset value of the equity fund changes with the market trend.

Sector Fund: A mutual fund that invests in shares of firms working in definite industries is known as sector fund. An infrastructure fund would invest only in infrastructural companies.

Equity-link Savings Schemes: It is a close-ended fund which means you will only be able to en-cash the money after the investment period is over. Dividends are without tax.

Debt Fund: Debt funds are invested in fixed income securities, government bonds, debentures etc. The idea is to safeguard your investment and you can expect modest but fixed returns. The NAV(Net Asset Value) of a debt fund does not fluctuate like an equity fund

Liquid Fund: They are short-term debt funds. It is an ideal mode of investment for those who are interested in keeping their funds for a shorter duration – for seven to eight days.

Balanced Fund: This type of mutual fund involves investment in equity and debt. 50 to 75 percent of the investment is done in equity whereas the remaining is done in debt. One must be aware as how to he has to go about with stocks to bonds ratio to be free from any risk and earn profit.

Since mutual funds are subjected to market risks, involving in a risky business can be a little dangerous if you are very careful about your investments. How about going for a business that frees you from the worries of risks?

I am talking about two tier affiliate marketing, it not only takes you away from the troubles of risks involved in investments and makes you all the more confident about earning regular that too by staying home. More and more people are becoming a part of this business and experiencing how this type of affiliate marketing can help them earn consistent profits without risks.

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