Category Archives: Mutual Fund Investment
1. Fast Diversification – Investing in mutual funds can help with diversification efforts. Because each fund has many holdings in the portfolio choosing the right fund can help any investor increase the diversity of their holdings. Some mutual funds may be very heavy in a single sector while others are more evenly spaced across many asset classes and sectors. When the right choice of funds is made the investor can benefit from a portfolio that is much more diverse and that will help manage risks.
What is a closed end fund and what advantages will a screener for this type of fund offer? This type of fund is frequently called a CEF, and it is an investment company which is publicly traded on the markets. With most mutual fund types shares are issued and redeemed but CEFs do not follow this method. These funds are treated like individual companies instead and are traded more like common stock offerings on the market.
1. Keep Costs Low With Discount Brokers- Mutual funds for dummies can help you understand the basics of mutual fund investing in a short time. One of the tricks to successful investing, whether it is mutual funds, stocks, or other choices, is to keep your costs as low as possible.
1. Fidelity Contrafund, Symbol FCNTX- Many experienced mutual fund investors choose this Fidelity offering. The large growth goal of the fund and four star Morningstar rating both make this an attractive option.
2. Vanguard Total International Stock Index, Symbol VTIAX-
1. Make sure that any mutual funds investment advice you receive does not cost you an arm and a leg. One of the most common mistakes made is paying an advisor too much money to tell you where the best fund choices are. Most investors can do this without professional help, if you are willing to take the time and effort to do this.
2. Take advantage of the many different tax free mutual funds that are available. These funds can help you limit the taxes you may owe from your investments, and they can offer city, state, and federal tax advantages.
Providing a list of best mutual funds is not an easy task as many different factors play important roles for different types of investors. So this particular list consists of top ten mutual funds companies by asset allocation. And the winners are:
Market timing mutual funds is a practice which is completely legal, and should not be confused with late trading, a practice which is illegal and unethical. Some of the best performing mutual funds practice market timing, which involves doing all the needed research and attempting to predict the best time to buy or sell shares. These funds disclose the fact that they use some short term trading methods including market timing, and this makes the practice acceptable. Late trading is different from market timing mutual funds because this practice involves receiving the net asset value cost at the previous rate, after the deadline for this value has passed.
1. Wasatch Micro Cap (WMICX) – Wasatch is included as one of the best performing mutual funds over the last ten years because this investment has seen a ten year annualized return rate of almost twenty five percent.
2. Value Line Asset Allocation (VLAAX) – This is one of the market timing mutual funds, and this fund has a four star rating by Morningstar and is one of the few that saw positive returns in the last few years when most funds had losses.
Low initial investment mutual funds are a great opportunity to get involved with the stock market even if you do not have too much money to begin with. Low initial investment mutual funds will allow you to open up a brokerage account for as low as $100 to $500 and start growing your investments right away.
Since your budget is limited, you have to be really careful about selecting good mutual funds that offer decent performance ratings along with low expense ratio of anywhere from 1% and below, preferably with no load fees.