Why invest in mutual funds? Advantages and benefits from funds

If you invest in the new world, should not be implemented directly in the stock market and investing in the Fund. There are several advantages and benefits, because their investment in this investment is a better alternative. I quote the great masters of the 'investment, Peter Lynch, "The Fund is a wonderful invention for people who have neither the time nor the desire to control your opinion havein relation to the stock market …."

In addition to being a better investment alternative for those who do not have the time or inclination to trade on the stock market is made up of various other advantages and benefits of this investment vehicle: –

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1 It has easy access to highly qualified professionals who have investment experience and knowledge to invest their money in bonds right and reward the best returns for their investments.

2Loans at affordable prices. Initial and subsequent investments in mutual funds is relatively small for the shares directly on the stock market. Your investments month by selecting the system through the dollar. As a result, you can start investing at a young age. With a time horizon longer you are more likely to achieve their investment objectives.

3 Are you able to get immediateDiversification across a broad spectrum of industries and companies, as most funds are highly diversified portfolio. You may not have enough money to have a diversified portfolio, in which direct investment in the stock market.

4 Your investment is liquid. Partial payment can be made and the return of the sales are running within a week of colonization. Many other forms of investment such as real estate investments are very illiquid. You may find that manyTimes when they desperately need money, and if it is able to transfer money from illiquid investments.

5 No need is too concerned about the control of the fluctuations of the market, a balance of stocks and bonds depending on the fund market held by mutual funds. Therefore, this causes an excessive use of stock market volatility is transferred to investment funds.

6To implement an average cost of $, a powerful and effective tool to improve ROI. This technique has proven the test of time and many investors have used when using this strategy.

I met many of the plants with contempt for the investment in the Fund. They say they have a better return from buying and selling shares directly to the stock market. I think this is true only ifGamblers select stocks at the right time. But the long-term investments and long-term could be of benefit and advantages of these reasons for investing in the fund, in each case the best solution.

Why invest in mutual funds? Advantages and benefits from funds

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Because cost-12b-1 fees in mutual funds?

Disclosure of bad habits in the investment world, which make some changes. The controllers were closer to the fees payable to investors. The rate, which receives much attention is now known as 12b-1 fees.

What is a 12b-1 fees?

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Securities and Exchange Commission (SEC) has started to load mutual fund 12b-1 fees in 1980 to allow. The name derives from the principles of SEC that the payment is authorized.

The original cost estimate of the funds in connection withDistribution of funds. This includes the costs of marketing, advertising and promotion of investment funds. The price includes printing and delivery of prospectuses and sales literature. In addition, brokers are paid a portion of its 12b-1 fees, expenses of the fund. This limits the fee is 0.75%.

Taxes can be perceived by members to ensure that representatives are available to meet investorsQuestions or requests. There is a limit of 0.25% in this part of the fee.

How do I know if the charge 12b-1 fees?

According to Lipper, about two-thirds of the funds to assess 12b-1 fees. Resources for the Study 12b-1 fees in the prospectus of the Fund are required. Although listed separately, 12b-1 fees on the back of gross expenditure.

Consumer protection

Since many users do not realize that the costpay for their investment funds, the SEC to require better information on project costs.

The organization is also clear that the abolition of quotas. While the rate was originally meant to help in advertising and promotion of investment funds is very little in taxes are actually used for today. Most of the 12b-1 amounts to intermediaries who sell the funds transferred.

It is feared that if agents receive additional compensation for selling certainInvestment Products is a high probability that a conflict of interest due to the recommendations of the corridor.

It is a red flag right away, but …

The fact that the fund 12b-1 fee is not an immediate obstacle. Some funds are the costs and still have low overall costs. However, when high power is not the norm, the higher the cost of funds of a significant effect on overall performance on behalf of investors.

For example, investments amounting to earn $ 10,000 on averageInterest at a rate of 8% per annum over 20 years will increase by $ 46,609.57. If the fund incurs 12b-1%, reducing the average interest rate of 7% per year, with profits increasing to $ 38,696.84. The long-term effects of 12b-1 fees are important.

While investors are looking for consultants who are reliable, it should be for investors, investment to ensure that decisions made on their behalf, are very important in your best interest.

Because cost-12b-1 fees in mutual funds?

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Investing in Funds: Beware of NRI

The concept of a mutual fund is known and needs no introduction. First, there is a kind of collective investment schemes, money mixed with the money of many investors and investments in securities, including stocks, bonds, precious metals, commodities and other investment funds. It 's all the manager of mutual funds, the means for managing the investments of the Fund. Usually the board or administratorto monitor how the fund is managed by the director or the company that funds ideas to ensure that the fund is managed in the interests of investors managed. The net profit and profit is distributed as a dividend, an investor invests regularly. Management fees for investors because the fund management fees.

There are great advantages NRIs who want to invest in mutual funds in India. Unlikethe single commodity trade of dealers in India, the lack of experience of professionals with experience in market trends and fluctuations. For small time investors can not afford to have someone with experience in the management of their investments through a professional, it is very convenient. Because the risk factor is the relatively small investment compared to other investment options, the value in this context are welcome.

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InInvestments in mutual funds, instead of holding stocks and bonds, investors' money literally broken, and has invested in several companies and organizations of all kinds. This reduces the risk of loss and promised to invest a profitable return on investment (ROI). Each of the limited resources, it is expected that investments will not be able to invest their money into stocks of different values, and taken on the matter. And whythe enormous amount of money transaction for the purchase and sale of securities, lower transaction costs, gravel soils that are very useful for the investor.

The investment policy of the Government of India and the growing Indian economy, India is investing in mutual funds can be very beneficial to the NRI. In addition to these factors can convert the subscribers in India, the funds in cash immediately, since the exchange of goods, at any time. ZDevelopment of the Internet may want to invest in real NRIs to invest in the transaction online with ease.

Investing in Funds: Beware of NRI

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Best Mutual Funds 2010 – How to choose the best funds?

Investments in mutual funds is a way of saving more money into the Indian market is not strong economic crisis is a better place to invest their savings and their prices will be much safer.

Some of the best mutual funds for 2010 to invest money to you, your team can:

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wealth management units of society – depends on investment funds and has several successful programs such as"Reliance Equity Fund." One of the oldest companies in India. And 'one of the "premium Reliance Group – Reliance Anil Dhirubhai Ambani Group, which has a strong management and investors.
Birla Sun Life Asset Management – the company was "The Sun Life Financial is a Canadian-based financial services" as a joint venture between Aditya Birla Group and Sun Life Financial. ".
TATA Asset Management Company – TATA Copyright mutual fund.by the Tata Group and implemented several plans.

How to choose the best funds?

The investment guidelines for the selection of the companies in which they will.

Please review the results of the company and management. Must have sufficient financial strength and investors.
After selecting a specific plan, you must consider the past performancespecial rules and profile fund manager, in charge of this plan.

Next step: read the instructions and start investing.

Best Mutual Funds 2010 – How to choose the best funds?

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Investment funds: poor performance

Did you know that approximately 75% of fund managers are not able to in the S & P 500, year after year? If, as many investors, the years invested in 10 mutual funds in the past, his speeches are probably less than the figures, which were mostly negative!

Another problem arises from the investors in those funds. Emotions always caused confusion among investors, many suffer their statements later.After Dalbir, the U.S. research and consulting firm, to test the behavior of investors (QAIB) showed that generates the S & P 500 8.35% 20-year period from the end of 2008, that a single investor, 87%, 2.89% less than inflation. Bond investors are no better. They had low productivity of 0.77% from 7.43% for the index.

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If you decide to buy, and set aside funds to support their long-term investment may also feel strong feelingsHeadwind. How the last 10 years have taught us that this strategy has its problems. From January 2000 to December 2009, the S & P 500 is a negative return of -0.60% for investors. Thousands of dollars invested at the beginning of this period was worth $ 851 ten years later. Given the erosion of purchasing power from the capital of inflation over a third of that time has been lost. There is also theconsiderable variability.

Some of you may say that the last 10 years have been extraordinary. Well, in December 1989, the Nikkei (Japanese stock index), reaches a maximum at 38 957th 21 years later the same index is equal to 9.557 in October 2010. This is a disastrous 76% from the top. Before the index can be obtained at any time, it will take many years.

If you add the fund management fees paid to stay invested in this, the numbers are even worse.

Zthe advent of ETFs, mutual funds are targeted more than ever a serious competition. Or reducing their costs, or the theory of Darwin to disappear slowly changed.

Investment funds: poor performance

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Investment funds, which exceeded the world market

Mutual funds are not new and exciting exotic "investment vehicles" or now (Exchange Traded Funds) ETFs reached the stage of investment in recent years. In fact, mutual funds often as "boring" and "long-term investment." To say that, in general, and much, because the risk of investment funds raised in the market. In fact, people that are rich in short-term (rewarded by a minimumMarch).

Since March, the TSX Composite Index rose subliminal (ca. 53%). Not bad, only had eight months to achieve this feat. Now we learn all aspects of this important growyth are actually only a few sectors responsible for the investment of Mars. These areas are:

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Banks

– Oil

– Natural Resources

– Technology

These four areas are largely responsible for the increase, whichTips for the place and many experts and analysts expect the sector enters a recession. Now they have access to the collection of this growth, look for long-term trends in the development, the investment has been made ​​over the past eight months, I'd like to see funds:

– Canadian Natural Resource Fund Investors

– IG Mackenzie Emerging MarketsFund

Canadian Natural Resources Fund, the market after gaining 71% over March, compared to 50% of the market. This is mainly because the oil industry has been grossly overstated and underestimated in the past year, and metals and oil companies have recovered since March.

Emerging Markets Fund significantly by 30%. Do not exceed the overall market, but 30% is not negligible.Emerging markets are at a much faster rate than all other developed economies of North America and Europe is growing. Known as the BRIC (Brazil, Russia, China and India) is the world's most dynamic economies of the four very important because these countries for nearly a third of the world. They have a huge impact on the markets for a long time.

Both funds will be able to grow strongly (perhaps 70% and 30%, but keepstill well above 10%) compared to the entire market for several reasons. Here are some of them:

– The value of the dollar death

USA is still looking for his weay recession ended. Therefore, the debt has soared. Consequently, the experience of very high inflation in the future (next 5-10 years), the resource sector Corel direct inflation rate, such as metal, mining and oil companies, inflation addTransfer and for consumers. Natural Resources Fund will greatly benefit from this trend.

Moreover, since inflation in the sky of the United States direct investment abroad rose to invest, which diluted many statements with inflation. Instead, it is in emerging markets gorwth much larger than its domestic economy. Emerging Markets Fund will benefit from this trend.

– The appetite for emerging marketsResources

Emerging markets need as much funding to the primary consumption of oil (the people of India and China buy cars and drive as usual) and infrastructure (steel, iron, copper. ..) For Economies.As Their development is visible in the natural resources and emerging markets, the funds will grow in the future.

– The U.S. government is still about 70-80% recoveryPocket money

Infrastructure is one of the most important areas that the government has allocated a substantial part of their budget to a stimulus. And the fact that much of the money does not mean that future growth in store for the natural resources of the fund, because it contains a lot of metal mines.

Finally, these two funds are not without risk and can be considered very unstable. (A list of resources is reduced almost50% of the recession last year). But if you have the stomach, the patience and temperament that the two measures can be very generously rewarded in the coming years.

Marco Consoli

Consultant

Toronto, ON

E-mail: @ investorsgroup.com marco.consoli

Website: http://www.investorsgroup.com/consult/marco.consoli/

Investment funds, which exceeded the world market

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The best mutual funds in 2011 – compared to equity funds, bond funds

Consider this warning if you take the best mutual funds 2011 and subsequent years will be back in stock funds to bond funds. Millions of people who own these funds, and many are wondering what is the best asset in times of great uncertainty. We compare and discuss some things you never imagined.

The year 2011 is a trend of investment funds has become very clear. Investors withdrew money from equity funds andTo perform the safety assessment of pension funds. Reason: pension fund good results, and capital requirements for large investors, who had been beaten again … twice in the "lost decade" from 2000 to 2010. In the future you can tie a big mistake to believe that the best way to 2011 and beyond will be known for investing in fixed income securities. Consider the nature of the two types of funds.

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Bond funds are often used as income because the funds identifiedThe goal is to earn relatively high interest income for investors by investing in fixed income securities. The second objective is to maintain stable prices of shares of capital or fund (security). Equity funds are often called equity funds, why invest your money in equities (shares) in search of higher profits in the sum … with a high degree of risk. You can make money when stock prices rise for a second dividend. Most people have learned the value orStock prices can swing back and forth. Many had the opportunity to change the value of the pension fund, so that even if the objective of price stability relative.

Few people within their means, but most of them, or lose money. For example, few know how and why a total return of 10% per annum to a pension fund, where you pay only 3% and 4% of dividends (interest) income. Where are the restThe benefits are? Quite simply, the price of your fund shares during the year has increased interest rates for the economy. This has been the trend in interest rates have fallen to historically low levels. Why income securities in the portfolio of fixed income bond funds have become less attractive to investors at all – the highest price in a bond on the open market.

The debate among stock funds, bond funds, which they say couldThe former are more predictable. If the economy is still low and interest rates fall, funds, bond funds can be the best in the year 2011 and beyond. Moreover, these actions are more predictable at the bottom. When interest rates rise sharply from almost all bonds are less attractive and lose their value. Therefore, the means to invest in them. There is a change in investment rules. Another is the fact that eachInvestments in danger … and this is a serious threat to unsuspecting investors income fund when interest rates are at or near historic lows. In addition, there is little benefit to the head to the left. Finally, as many of the interest rates?

Equity funds, the stock market has always been unpredictable from year to year. Therefore, these measures are necessary in order to warn investors of the risks of investment. On the other hand, long-termbenefits (profit) on average 10% per year compared with yields of 5% to 6% for pension funds. A few years have produced returns of 30%, 40% or more for investors. Another advantage is the wide range of mutual funds for investors, on average: in the diversification of the general fund of the international markets, emerging markets and special funds, specializing in the call to gold, real estate and natural resources few. Not all venture capital funds in the tank when the stock market in the United States is eliminatedLoop.

The best mutual funds in 2011, the debate on pension funds, equity funds, this is in contrast to my last thought for you. The average investor should invest in both. It can be done, and the total cost of risk as follows. The Fund's revenue in the long run, because they are very sensitive to interest rates higher. Go with at least moderate risk fund. In the section to diversify equity funds like crazy with the inclusion of international and specialty funds in the portfolio. Generaldiversified equity funds should be your first step, but a bit 'mixed. Funds specializing in these gold, real estate and oil reserves in the leaf is sometimes a bad stock market.

It is not necessary to be successful, you will find the best funds for 2011 and beyond each class. They have the best collection of pension funds and equity funds, the overall risk of the portfolio on a level, can live.

The best mutual funds in 2011 – compared to equity funds, bond funds

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Guide to Mutual Funds – How to identify the best funds?

Mutual funds are a trust that is dedicated to raising funds from various individuals, the "ultimate goal of increasing investment by the '. All the money collected, an investment manager may be responsible for investment strategies. The manager invests all investment funds with different investment options, such as bonds, equities, money, etc.

This is the best option for the diversification of investments are not for peoplealone. Diversification of investments is the risk of high losses of investments demolished. These funds offer a wide range of liquidity and diversification.

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For beginners who want your money in the long run I think the best solution. The investor receives a good annual results. Another advantage of choosing a mutual fund is a lot of investment tax credit for fat because they areEquivalent to retirement accounts.

To find the best funds?

Identify the best system is not an easy task, because we believe it to be. Because the markets are more predictable, it is very difficult to recognize the best. It is not possible for the best performance that are listed in newspapers and magazines. These elements change with the changing market.

It 'always makes sense to focus on emerging markets. These technological advancesSales lead to success in business. This new technology, companies can withstand the impact of business events, such as recession, efforts to support the existing technology to improvise. The managers of investment funds are increasingly attracted to new technology and companies prefer to invest in these technologies investments provide a good return for them as well as each other.

E 'therefore necessary and appropriate, in order to have a conversationwith the manager of mutual funds, the best investment opportunities may be in the fund may be perfect for you.

Guide to Mutual Funds – How to identify the best funds?

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What are mutual funds, hedge funds and managed accounts?

What is the funding? "The investment is a collection (made possible by many investors) back is professionally managed by experienced fund. The advantage of this investment is that you get a go with him.

Why not have the money to you?-Fund managers to use for general distribution costs of different types. Overall, the risk reduction. Your money is not significantly different fromthe stock market.

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When you invest in individual stocks themselves, they prefer by all means, go ahead. But often requires know-how. For beginning investors, this can be a difficult task. Therefore, funds that invest in the future. In fact, if you invest your hard earned money to mutual funds is the responsibility of a professional manager of a relatively low. Comparison of risk factors and experience, sometimes it's hard to competeof them, when you invest in individual stocks.

What should be the subject of trade, hedge funds and account management? You should be able to know that the investment is not the only option when it comes to hiring a professional fund manager.

Exchange Traded Funds (ETF)

They are similar to mutual funds. The only difference is that trade on exchanges. "ETFs can be bought and sold at the same time during the dayNegotiations. You will find this good and more "electronic money transfers, money is like a low rate. They work by investing track the value of each market.

Hedge Funds

Hedge funds are funds that are privately run. This is often an option for the rich people more money to invest. Sure, there's more money involved, the risk is increasing. You'll see that prices are much higher (typically 15 to 20 per cent)Restitution of hedge funds. Investors need to stay away from hedge funds against their knowledge in this area.

Managed Accounts

Investing in managed accounts is almost the same as investing in the fund. This is the big brokerage firms by the Commission. After the provision of access to private equity funds. Therefore, you can use the same in essence, the fund manager. But managed accounts are generally not recommendedhigh reduces the effectiveness of the product compared to the normal "investment".

What are mutual funds, hedge funds and managed accounts?

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Mutual funds, you should know

Investment funds are a resource group that manages a professional. The professionals who use money from different people to buy shares in various companies. In this way, people are not affected by lower prices for the various companies.

In analogy might be to ask for a dessert with a group of friends. If all branches and activities of different desserts, everyone can get a taste of many different things.

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Similar to a mutual fundallows an individual to own shares in many companies, "without large investments.

Mutual funds are attractive to novice investors as it is relatively easy. They will be managed by a professional, do not need a lot of research by private investors. It offers the opportunity to "play the market," without the risks that come with ownership of shares in individual companies. For example, if an ownership share of the companyDrops suddenly, that person will be a lot of money. But if the fund, the fund's losses may be offset by other resources deserve.

Hedge funds are attractive investments, they often fall into several categories. For example, they wanted to invest in technology can find a fund that buys only securities of technology companies. Other popular categories of environmental indicatorsCompanies, pharmaceutical companies and biotechnology companies.

The most famous is probably the S & P 500 fund, which is a whole group of 500 companies are generally the same as the stock market.

Although mutual funds easiest way to invest to invest in shares of the individual investor should periodically review their investment funds to ensure that the implementation of the way they want. ManyPeople make the mistake of not checking their funds too late to find the money they lost. In addition, investments in the fund, there is no possibility of diversification of investments, you should also diversify the investment funds, to invest more diversified.

Overall, the agent is an excellent investment in your portfolio.

Mutual funds, you should know

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