Why Many People Lose Money in Top-Performing Funds

Why Many People Lose Money in Top-Performing Funds

Believe it or not, half of the people invested in some of the best-performing funds in the country may lose money. How can that happen? Very few people buy during a bear market.

Are Monthly Investment Plans for You?

Are Monthly Investment Plans for You?

I do not generally favor monthly investment plans, where an investor adds Rs 5000 or so every month to a fund program. My reason is practical. Most people do not stick with them religiously. Therefore, they delude themselves by thinking they are going to achieve substantive long-term goals with such plans. If, on the other hand, you can have money automatically .

Checking Management Fees and Turnover Rates

Checking Management Fees and Turnover Rates

Some investors try to evaluate the management fees and portfolio turnover rate of a fund. In most cases this nit-picking is not necessary.

In my experience, some of the best-performing growth funds have higher turnover rates. The Fidelity Magellan Fund, during its three biggest performance years, averaged an annual turnover rate of over 350%.

Should You Buy a Global or International Fund?

Should You Buy a Global or International Fund?

Yes, these could be a sound investment and provide further diversification, but I would definitely limit the percent of your total fund investment investments. International funds can, after a period of good performance, suffer several years of laggard poor performance.

Tags: stock market, stocks, stock market useful guide, stocks tips, Earn Money from stock, How to make money in stock market

How Many Funds Should You Own?

How Many Funds Should You Own?

As time passes, you may discover a second fund you would also like to begin accumulating in another long-term program. If so, do it. At the end of 10 or 15 years, you might own a worthwhile amount of two or even three funds, but there is no reason to diversify broadly, so don't overdo it. Those rare individuals with multimilliori-dollar portfolios could spread out in more funds which would allow them to

How about Income Funds?

How about Income Funds?

If you need income, you may find it more advantageous not to buy an income fund. Instead, you could select the best possible fund available and set up a withdrawal plan equal to l!x>% per quarter or 6% or 7% per year.

Part of the withdrawal would come from dividend income received and part from your capital, but the fund should generate enough growth over the years to more than offset the withdrawal of capital, if it is limited to 6% or 7% per year.

How to Become a Millionaire the Easy Way In Mutual Funds

How to Become a Millionaire the Easy Way In Mutual Funds

Here is what I regard as the ideal manner for a shrewd mutual fund investor to plan and invest. Pick a diversified domestic growth fund that performed in the top quartile of all mutual funds over the last three to five years. It will probably have averaged an annual rate of return of about 20%. The fund should also have a better-than-average record in the latest 12 months when compared to other domestic growth stock funds.

The fund can be either a no-load, with no commission, or load, or one where a sales commission is charged. If you buy a fund with a sales charge, discounts are offered according to the amount you invest and some funds have back-end loads which you may want to check.