Mutual funds are a type of an investment vehicle that pools money from many investors and invests in securities. The fund is managed by a manger that works to invest the money in securities he or she believes will generate higher return.
There are many different types of mutual funds where investors can invest. One of the biggest advantages with mutual funds is that it gives small investors to diversity with little investment. In addition, with little cost they get their money managed by a professional in the industry.
As we move towards the end of July, trading in the stock market continues to be murky and filled with obstacles and uncertainties. The S&P 500 is holding on to a small gain this year, but there’s still a sense of nervousness among investors in the stock market. While the small-cap stocks segment of the stock market continues to be apprehensive, and with a slightly bearish bias with the Russell 2000 being negative on the year so far, I’m also seeing some warning signs emerging from the broader stock market and blue chip stocks. The S&P 500 continues to fall short on numerous occ ... Read More
The optimism on the key stock indices is increasing as the fundamentals that suggest the rally will go on continue to deteriorate. Investors beware; this disparity doesn’t end well. The possible upside gains look to be very small, and the downside risks are increasing. To me, it feels like we are back in 2007 all over again—when key stock indices were making fresh highs and fundamentals across the board were tormented. Stock advisors were telling their clients to buy more. Irrationality was exuberant. I remember one celebrity stock advisor saying som ... Read More
Long-term investing and growing a portfolio over time isn’t an easy task. It requires a lot of planning and a significant amount of research. While doing this, many investors tend to forget one very important aspect: the costs associated with investing in their portfolio—the commissions and fees. If investors control the commissions and fees paid to their brokers and elsewhere, they can save a significant amount of money and have a bigger portfolio in the end. For those investors who have resolved to invest money in their portfolio in 2014, the following are three ways to add more wealth to your portfolio ove ... Read More
“I think it’s all about taking risk; you have to take more of it—get out of your comfort zone. You can’t just keep doing the same thing and expect different results—it’s that simple.” These were the exact words from my friend, Mr. Speculator, on portfolio management. “I am not looking for just a menial 10% return,” he added. “I am in it for a much bigger gain. To gain more, you have to risk more.” Mr. Speculator is right about one thing: to ... Read More
Let’s face it: investing isn’t easy, and it becomes even more discouraging when investors face losses in their portfolio. To avoid a drawdown in their portfolio, investors should avoid the following five mistakes. 1. Not having an investment plan Investors should have some sort of plan put together before they even jump into the world of investing and start allocating their portfolio to different investments. Having a plan guides them in what kind of investments they should be making and the risks they should ... Read More
When it comes to diversifying your retirement portfolio and investing in as many companies and industries as possible, nothing beats an exchange-traded fund (ETF). Similar to a mutual fund, ETFs are investments that (attempt to) mirror the return of a particular index. Unlike mutual funds, investors can buy and sell ETFs on the open market like a regular stock. Both retail and institutional investors like ETFs because they give them the chance to add a basket of equities to their retirement portfolio that t ... Read More