User:LaurenePrescott
A road can be used by a lunatic driver speeding at 140 km/hour for the thrill or by a sensible driver. The stock market offers the opportunity to make wonderful long-term returns — but also the temptation of reckless driving. There has been a sharp decline in mutual fund inflows since August, when entry loads were waived.youtube.com What is your sense of how this issue will evolve?youtube.com My view is that quite a few distributors were mis-selling mutual funds to their client base. The focus of the distributors was on the commissions that they would earn, rather than what was best for the investor over the long term. Unfortunately, most of the mutual fund houses in India were part of this system because it allowed the fund houses to show a growth in Assets Under Management on which the AMCs (asset management companies) earn their fee.
So, there was an artificial demand for mutual funds based on the ability to sell, rather than the need to buy. After SEBI's new rule, the distributors have no incentives to sell mutual funds so this artificial demand has disappeared. The distributors are now playing the regulatory arbitrage - selling those financial products like ULIPs which allow higher commissions. Now, with these forced lower commissions and expenses, the mutual fund industry should be advertising about the advantage of lower cost products like mutual funds versus the higher expense products like ULIPs! But, there is silence. The mutual fund industry may be paralysed by the fact that many mutual fund houses are in the insurance business themselves. Quantum Mutual Fund does not face these issues.
February 2006 - but we were the first to refuse to play along with an opaque and loaded distribution system. Would the availability of MFs on trading platforms like NSE, BSE encourage churning, as investors are used to trading too much on stocks? Cars are designed to run at speeds of 140 km per hour and more. That does not mean we should drive the car at 140 km per hour! Credit card companies give us spending limits on our credit cards. That does not mean we need to go on a shopping spree. We need to balance what technology or accessibility allows us to do, with what is sensible.
Having mutual funds available on the NSE and BSE platforms is fantastic. It increases the reach of mutual funds by 30,000 per cent and there is a move to bring transparency in the process. The contract note from the broker will show the amount of commission brokers will earn from investors on each mutual fund transaction. Of course, there is scope for misuse. Investors must read and understand why they are buying mutual funds - they cannot expect the regulator to tell them what to do every day. Only six of ten equity funds have managed to outperform the market indices in 2009, a far fewer number than in earlier bull markets.
Is this a trend likely to stay? Are active managers in India likely to find the going tougher from here on? The year 2009 was challenging for many momentum managers. The BSE-30 Index was stuck in an 8,000 to 10,000 trading range till March 2009 and many fund managers felt that the market would fall to the 6,000 levels. So, they stayed on the sidelines. Quantum Long Tern Equity Fund outperformed the index by 14 percent. We are boring, value investors and like to buy stocks when they look cheap. We did not have much cash - we were fully invested. The debate of active fund management (where stocks are chosen by the fund manager) versus passive fund management (where the index is blindly replicated) is, in my opinion, misguided.
Our indices change too often. The indices contain so many companies that I would never trust with the savings of our investors. The focus should be on risk. The market is factoring in fairly high earnings growth estimates for FY11. Are these achievable for India Inc? I have no doubt that, over the long term, many Indian companies are capable of showing a 15- 20 per cent growth in earnings every year and investors should focus on that. There will be short periods when there is no growth as happened to be the case for the year-ended March 31, 2009. Recent quarters have shown raw material costs and operating leverage aiding profit growth.
Toplines seem to be still sluggish. Do you see scope for sustainable profit growth through 2010, in this light? We can see first signs of exuberance again today, with statements like ‘the Indian economy could grow by 9 per cent' and so on. This may be followed by the irrational capacity additions. These capacity additions will eventually hurt the earnings cycle and share prices. Don't get me wrong - the 9 per cent growth in GDP can happen.youtube.com But it must happen in a sustainable manner - not as a result of some global events that are not under our control. After a year of stunning gains, will 2010 be a more challenging year for fund managers? Where do you see the opportunities and pitfalls?
The stock market is a place where companies that need capital for growth come to find those investors who have the savings to meet these needs. But now it is all about the gambling and the liquidity and the excitement of making money every second. A road can be used by a lunatic driver speeding at 140 km/hour for the thrill or by a sensible driver who understands the benefits of using a vehicle versus walking. The stock markets always offer the opportunity to make wonderful long term returns - but they also offer the temptation to be a victim of reckless driving. Momentum investors are challenged on a daily basis and their final risk-return result is a function of how good and successful their last trade was. In 2010 and beyond, our job at Quantum will be to stay focused on the managements of companies that we can buy into for a sensible price. Very boring when compared to the fast-paced world of high-frequency trading but we recognise the risks we take and sleep well every night.
Wells Fargo Advantage Funds offer a variety of investment products such as open- and closed-end mutual funds, quarterly reports, product alerts, fund holdings and complementary investment solutions. They offer these services to investment professionals, institutional investors and individual private investors. What is the investment advantage and disadvantage of money market mutual funds over Cd's and savings accounts? Money market mutual funds are safe and extremely liquid. There are usually no fees associated with transactions in money market funds. Most brokerage accounts provide access to money market funds which can be used to park funds from stock or bond sales pending reinvestment. Where should one go to inquire about fidelity mutual funds? There are many financial institutions that can offer guidance, advice, and options for fidelity mutual funds. Vanguard, Morgan Stanley, and others will have a large customer service groups that can tailor a portfolio to your income, lifestyle, and risk level. 5 types of services banks offer?
Hard to believe another year is half over. Since it seems to be the thing to do for financial bloggers, I'll take a look at how this year has gone. This is the year we are learning how expensive new(ish) cars are. We unexpectedly ended up buying an almost new car Labor Day weekend last year, and since we had just cleaned out our account buying a used car for my college girl, we decided to finance it.youtube.com Our interest rate is low, we are glad we have the car and financing it was a better choice than liquidating assets but we definitely notice that payment coming out of our account. We also notice that it costs more to insure an almost new car than one that you only carry liability on. This has been the year of medical and dental bills.
I'm in the middle of getting an implant and crown, and I had a wisdom tooth pulled. My teen starts Catholic high school in the fall, meaning her tuition is twice what we have been paying, and that it was due two months earlier. To have the money, we had to liquidate assets, and chose to do so from our Lending Club account. I'm not sure we'll be able to pay ourselves back this year, it just seems like every month there is something. To avoid this problem next year, I have started putting 1/12 of her tuition plus 1/12 of our insurance bills into a savings account each month. The way those bills fall, we should be able to pay them from the savings account.youtube.com I'll be the first to admit that discretionary spending slows around here when the checking account balance gets low.
Luckily, our major savings in our 401ks are automated, and fortunately, the stock market has done well this quarter. Let's take a look at some numbers. My husband and I have Roth IRAs and regular IRAs, and a taxable account. 300 in each Roth IRA this quarter. 407.98 this quarter. It is invested in Janus Triton, Oppenheimer Int'L Small Mid Co A, MFS Government Securities Fund-A , Pioneer Fundamental Growth Fd-A, and Delaware US Growth Fund-A. My husband's 401K is with AXA and it has increased in value, though not a lot.youtube.com He puts in the minimum necessary for employer match. 78.98 in dividends. I have invested in "Motifs" or baskets of stock with a variety of themes including dividend payers, things I like and online gaming.
10 fee. To avoid that, I am planning on moving money from Lending Club to Motif. My returns have been steadily dropping. Accounting for expected defaults, Lending Club estimates my return since I began the account at about 5.05% annually, whereas three months ago it was 5.68% annually. I had a negative return last month--more write-offs than interest paid. From what I've read in various places, I'm not the only one whose returns have dropped. As notes mature we are not re-investing; we are moving the money to Motif and to our Roth IRAs. My returns here have dropped as well, but not as drastically. Loyal3 went out of business.
Rather than selling the fractional shares and moving the whole shares, I just sold everything and applied it to the tuition bill. At this point I own shares of AT&T, Visa, CVS, Lending Club and Hanesbrands. Robinhood is an online broker that uses phone apps only, no webpage. They charge no commission and allow you to place limit or market orders. They also allow you to initiate bank transfers and then invest the money immediately--you do not have to wait for the tranfer to complete. You do have to buy whole shares. This is an online broker for whom I wrote a sponsored post. 100 in Johnson & Johnson through them.
100, since my investments in individual stocks are as much toys as investments and I don't plan to put too many dollars in any one stock. I'm in the process of withdrawing my money not only because I'm in the red (an expected risk of investing) but because I've become convinced that Kickfurther is going to fail. All in all, the second quarter of 2017 was a good one investment wise. Hopefully during the second half of the year we can return some of the capital we had to withdraw during the first half, but I'm seeing some big expenses down the road. 50,000 richer, but most of that is stock market gains, not savings. We did put more in our 401k accounts than we pulled out of the others so we are going in the right direction.
In the words of Benjamin franklin, "An investment in knowledge pays the best interest." Quite an in-depth quote, meaningful in the times of rapid financial and economic changes. When it comes to future investment planning a common man’s mind swings between two words, "security" and "risk". The investments can be made for short term, medium term or long term depending upon the risk element involved in the asset invested in. Most of the investors prefer an investment plan up to five years of span that gives a valuable return and bears less risk. Based on that mutual fund have various schemes for short term and mid-term investment goals.
Before opting out any investment plan, consider the following factors. 1. Be clear with your investment goals in terms of safety, growth or income. For example, do you seek to invest for retirement or your focus is on preserving the principal value. Investment depends upon the time frame and your requirement of funds. 2. The amount you are ready to invest should be calculated. There are many schemes that offer a minimum investment option and goes up to a higher limit. If you have larger sums to invest then it is better to go for a diversified portfolio plan. 3. Risk bearing capacity of the investors and yield by the available investment plans.
A diversified investment plan always minimizes the risk and never invests all the funds in high yielding plans.youtube.com Mutual funds contain multiple investment options on the basis of their type and investor’s fund raising capacity. Mutual funds are close ended, open ended and with interval schemes. Let’s take a look at some of the possible investment plans suitable for different investors with their distinctive criteria about funds and risk. SIP Plans: The Systematic investment plan (SIP) allows the investors to invest small amount of funds instead of large amounts for a shorter span of time such as weekly, monthly or quarterly.