Mutual Funds are considered to be one of the best investments one can get hands on. They're very flexible and cost-effective. An excellent investment for people with restricted knowledge, time or, money.
For beginners, who might have a perplexed expression on their faces at the mention of mutual funds; let me first acquaint them with what the mutual funds are all about.
A mutual fund is a financial instrument that enables a group of investors to pool their money together. There's a fund manager who takes care of the pooled money and invests them into specific securities (stocks or bonds). Investing in mutual funds basically means buying shares of the mutual fund and becoming a shareholder.
Having read this, you may have now decided to buy a mutual fund. But you've over 10,000 mutual funds to choose from. So how do you make sure that the one you've picked up is the right one?
For those who're new to this investment thing, let me apprise you with 'load' and 'no load' mutual funds. 'Load' is basically a commission that has to be paid to the broker when you buy the fund while 'no load' mutual funds are free from such commission hassles, as they're sold directly by the investment company.
It's best to consult an investment counselor before plunging into this venture. These finance mentors will charge a certain fee from you. They get no commission from the firms. Getting paid from their clients, these counselors make sure that you get the best out of any deal you make. Hence, you're sure of getting a reliable advice from your counselor. And obviously, they'd always advise you to go for 'no load' mutual funds. Why?
Well, it goes like this. 'Load' mutual funds are sold by brokers who get paid by the firms. Right? So, I don't see any reason why they'd be concerned whether you make or lose money. They're only interested in persuading you to buy funds often, so that they can relish their rewards from the firms. Moreover, 'load' mutual funds consist of front-end charges, back-end charges, or deferred charges. Quite loaded!
Any savvy investor would certainly ensure that all of his/her investments are worthy. The investors get to choose the funds on their own, the way in which it happens with the 'no load' mutual funds, as they are free from charges.
However, at the end of the day, the presence or absence of a broker has got nothing to do with the success of your investment. It's actually the advice you get from your counselor that really matters. A well-planned decision and a loyal advice on when to buy or sell are vital for securing a bright financial future. So, keep your mind wide open and invest! Good luck!
James Marriott is a finance writer with more than 15 years of experience in writing financial content, including those related to credit cards, mortgages, stocks, investments, and funds. He has been with RNCOS, a premier financial writing services company, for 2 years as head of financial writing. He is also a regular financial columnist with renowned business journals. For your comments on the article and further financial assistance, please contact our staff writer at info@rncos.com.
Despite what some people may lead you to believe; day... Read More
Scams and frauds are designed to take your money through... Read More
As a precious metals investor, you may heard much about... Read More
In 1519, Hernando Cortes, beached on the shores of unexplored... Read More
Here are some useful tips on investing. When you make... Read More
FOREX, the term for the FOReign EXchange market, is an... Read More
In this day and age of online brokers for virtually... Read More
Disgruntled investors are going after Wall Street once again, this... Read More
Arthur Levitt, during his tenure at the SEC, experienced many... Read More
About thirty years ago, statisticians armed with all of their... Read More
Not long ago I was laying on my son's floor... Read More
Before every protective put trade it is possible to calculate... Read More
The Roth is kind of weird until you get used... Read More
I submit that the successful day trader would profit well... Read More
Agonizing displays of poor theatrics failed to entertain my mind... Read More
Okay, so I can tell you I have sat in... Read More
Many people have, at one time or another, taken some... Read More
"The American Age of Inflation is finished." So says economist... Read More
What is the value of a good habit? Think of... Read More
There are many reasons to be investing these days, and... Read More
Firing an employee seems to be easier and easier for... Read More
When you start your program to purchase your "ideal" company,... Read More
The last time you spoke with your broker did he... Read More
Tropical Storm Arlene formed as a tropical depression on June... Read More
The technology boom of the '90s romanticized the "rags-to-riches" ideal... Read More
You all know what CYA stands for. Of course, Cover... Read More
It is a common question when investors review their retirement... Read More
The practice of economy, directed toward a retirement investment plan... Read More
As I take my leisurely walk with my dog through... Read More
First, I need to explain about e-currencies or digital currencies.... Read More
How many books have you read about successful traders? How... Read More
Can you concisely summarize your investment philosophy in a few... Read More
When thinking about the investors business daily responsibilities in today’s... Read More
As a precious metals investor, you may heard much about... Read More
For those accustomed to viewing things a certain way, it... Read More
Upper Saddle River, N.J. - May 11, 2005 - Now... Read More
1. Lacking an investment plan a/k/a/ "Don't take a trip... Read More
The following perspective on (day) trading comes from my many... Read More
Computerized investing. Online investing. Have you taken the next step... Read More
Looking Inside Your Tenant's Mind Basic Mind-Reading Report 101 for... Read More
Investors are still too slowly realizing what the academics have... Read More
Scams and frauds are designed to take your money through... Read More
If you've decided to stock some money away in a... Read More
Location ? Once the holy grail only for real estate... Read More
It is important to answer the following questions before you... Read More
The perfect company - it's the holy grail of the... Read More
Larry, Moe and Curley were sitting in their favorite restaurant... Read More
Ready to start playing with your money? Not interested in... Read More
The word 'investments' is one that most of us are... Read More
For a successful retirement investment plan to work in the... Read More
They call 'em ETFs.There are hundreds of them.The mutual funds... Read More
The American Football season just came to an end with... Read More
If there were one piece of advice that an investor... Read More
Market timing systems are based on patterns of activity in... Read More
First, I need to explain about e-currencies or digital currencies.... Read More
"Through wisdom is a house built. And by understanding it... Read More
For investors only... and for speculators who need to invest... Read More
Some time ago I attended a seminar where participants were... Read More
Based on consistent results I think Buy & Hold should... Read More
Clean Up (includes the insides and the outside of a... Read More
This column has previously discussed "picturing the future that we... Read More
The man sat in a chair beside a dressing room... Read More
There has been much talk lately about Coca-Cola and its... Read More
There is a cat fight brewing between Direcway LLC, Starband... Read More
Putting Rare Coin Market Cycles to Work for You...Until recently... Read More
About 6 years ago I started to notice that certain... Read More
Investing |