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Mutual Fund Basics Guides

Mutual Fund Breakpoints

If you are planning to invest in mutual funds, you need to learn about breakpoints. Breakpoints offer mutual fund investors the opportunity to get a discount on their sales load.

How to Read a Mutual Fund Prospectus

The mutual fund prospectus contains valuable information that you should by all means get familiar with before you invest. Learn how to read the mutual fund prospectus.

Get to Know the Mutual Fund You Invest In

Before you invest in a mutual fund you need to read any information that is available to shareholders and investors in order to know where you invest your money. There are various documents you can use to obtain such information.

Investing for Women

Women are subject to the same investment advices as men. However, women should invest more in their portfolios than men for several reasons. First of all, women generally earn less than man.

Investment Risk Tolerance and Types of Risk

Before starting investing in the vast realm of mutual fund you should carefully consider the level of your risk tolerance. In the short-term, risk can be defined as price volatility or variability, whereas in the long-term perspective, risk is viewed as the possibility of being unable to financially meet you goals due to insufficient capital.

Mutual Fund Performance Measures

Investment performance is one of the most important factors on which investors base their decisions on whether to invest in a particular mutual fund. That is why most mutual fund sources provide so much information on the performance rates.

Compound Annual Growth Rate

Mutual funds are beneficial in many ways one of which is trough compounding. This means that once you are paid dividends you reinvest them in the mutual fund.

Where to Buy Mutual Funds

Mutual funds can be purchased from a variety of sources. Here is a list of some of the financial entities that offer mutual funds.

Advantages of Mutual Funds

Mutual funds represent one of the most popular investment solutions among the US investors. Here are some of the many reasons why they represent a preferred parking place for investors’ money.

Why Should I Invest in a Mutual Fund

By investing in a mutual fund investors significantly decrease the risk of losing their money. This security of investment is similar to the one found in certificates of deposit or other investments of a fixed income type.

Implication of Mutual Fund Mergers

You should not be surprised if the many fund families and mutual funds start to merge into one another.

Top Financial CEO Salaries

The financial industry represents one of the most beneficial in financial terms of all industries. This is due to the fact that the salary and bonuses that the five CEOs that receive the highest remunerations amount to more than nine million dollars every year.

Mutual Fund Categories

Many potential investors are discouraged from embarking on investing since they find it hard to understand the many financial terms incorporated in the investment world (like the many mutual fund categories).

Investing in Education

Constant education is one of the prerequisites of becoming a successful entrepreneur. Whenever you need to climb the hierarchy ladder in your company or further develop your professional skills, you will need to invest in your education.

How to Do an Investment Research

When deciding to make an investment you should first research whether the company under consideration is privately-held or publicly-held.

Mutual Fund Performance Evaluation Benchmarks

When evaluating the performance of your mutual fund, you should determine clear standards against which to benchmark it. Since very mutual fund has a specific approach and objectives, you should outline clear criteria for assessment of your mutual fund manager’s performance.

Index Mutual Funds

Index mutual funds represent the counterparts of the actively managed mutual funds, they attempt to mimic the behavior of a chosen index.

High Turnover Ratios Warnings

Many investors in their attempt to get the highest returns overlook the major goal that they have to have, namely highest profits after taxation. As a result they commit a mistake of guiding the mutual fund by the growth percentage, instead of turning their attention to the turnover ratio.

Mutual Fund Expense Ratio Considerations

Expense ratio represents the money needed to own a mutual fund, which are also needed in order for the mutual fund to break even before it cans start making profits to its shareholders.

Balancing a Checkbook - Lesson Plan

Balancing a checkbook lesson plan - in order to balance you checkbook, all you need is your most recent bank statement and cancelled checks if you have such. In order to facilitate the balancing process, we have summarized a basic lesson plan you should follow.

Student Loan Debt Management

Many of today’s students have to take loans in order to provide the money for their university studies. Unfortunately, after they graduate they barely manage to meet both ends, due to bad financial conditions caused by their inefficient student loan debt management

Unemployment Insurance Benefits Eligibility

Unemployment Benefits - if you make unemployment insurance you provide yourself with monetary payments you can enjoy if you lose your job without having whatsoever fault.

Guide to Mutual Funds

Now that you have decided to invest in a mutual fund, here are some guides to mutual funds that you should always have in mind so that you are guaranteed a higher rate of success along your mutual fund path.

How to Invest in Mutual Funds

Now that you have decided to participate in a mutual fund, you have done the first step toward a wise allocation of your hard earned money. To facilitate your selecting process, we have created a how to invest in mutual funds tutorial you should check before jumping into a particular mutual fund.

Investment Psychology Explained

Investment psychology - our reasoning is often subject to “cognitive illusions” much in the same way as when our eyes are tricked by optical illusions. We often unconsciously self-delude ourselves by not admitting mistakes we have made.

Best Books on Investment Psychology

Every investor is guided by both his common sense and feelings when s/he decides on a mutual fund investment. Our psychology often deters us from taking on an investment opportunity just because we are experiencing some inner resistances.

Top Fears to Overcome and Start Investing in Mutual Funds

If you are one of those people that do appreciate the benefits of mutual funds investing, but find it difficult to get started, here is a list of the most common psychological obstacles you should overcome in order to enter the mutual fund business.

Mutual Fund Manager Potential Assessment Part 2

On the other hand, the disclosure of the exact ownership of shares of the mutual fund may not be representative of the exact portfolio of the fund manager, since the state possessions required by SEC are within dollar ranges.

Mutual Fund Managers Potential Assessment Part 1

When you purchase shares of a mutual fund you automatically get the services of a mutual fund manager or a group of mutual fund professionals. Their main responsibility is to manage your investment portfolio by deciding which securities to purchase.

Act upon Mutual Fund Problems

Whenever a problem arises with your mutual fund investment, don’t ignore it, but act upon it. During your participation in a mutual fund you may incur problems with your stockbroker, portfolio account or investments.

Complaint Letters to the Mutual Fund Managers

There will be times when you will not be satisfied with the services of your mutual fund stockbroker. Additionally, you may not be satisfied with a trade that either contradicts with the predetermined objectives or it represents an authorized activity.

Listen to Your Mutual Fund Broker

In their attempt to win you as a client many mutual fund brokers make promises that sound too good to be true. In such cases carefully consider all the strange statements that s/he makes and critically analyze them.

Papers to Examine - Trade Confirmations, Prospectuses, Account Statements

When you open an account in a mutual fund, you will be regularly sent documents that are related with the executed transactions - trade confirmations, prospectuses, account statements. Whenever you receive such papers make sure to open them as soon as possible

Mutual Fund Account Opening Documentation

The opening of an account in a mutual fund is connected with the signing of many documents. You deal with the documents you are requested to sign when opening the account with a great precaution.

Mutual Fund Board of Directors Composition

The announcement of the many mutual fund scandals has left the mutual fund board of directors under the close and critical scrutiny of the public.

SEC Mutual Fund Board Regulations

In 2004 SEC has passed several new regulations addressing directly the activities of mutual funds. These new regulations received a 3-2 vote and have a straight impact on the structure of the mutual funds’ company boards.

US Patriot Act Section 326 Impacts

Section 326 of the Patriot Act requires financial institutions, such as banks, mutual fund companies, brokers and etc. to collect more information about the account holders.

Bear Sterns Late Mutual Fund Trading Scandal

On March 16, 2006 the mutual fund trading scandal in which Bear Sterns was involved was finally ended. Mr. Sterns agreed to pay $160 million as a return of the illegally made gains and additional $90 million in penalties, which sums up to the total of $250 million.

Important and Useless Financial Paperwork

This article provides you with information on which paperwork you should keep and which to destroy. Due to the many regulations that mutual funds are subject to, investors are plied with tons of documents.

Bond Fund Pitfalls

Bond funds have been an attractive place for investment for risk-averse investors, who consider single bond investment as riskier. But, they fail to identify the hidden implications that bond funds carry with them.

Mutual Fund Types

Selecting the right mutual fund that will match your financial needs is not an easy task due to the myriads of types. The basic types are:

Investment Returns Pitfalls

Do not let your desires obscure your rational thinking when the time for deciding in which fund to invest your money comes. Chasing returns is not always the best practice you can undertake.

Closed-end Fund Definition

The basic similarity between closed-end funds and mutual funds (also called open-end funds) is that they both accumulate investors’ money in order to use them for the purchase of stocks and bonds.

Mutual Fund Selling Time

Deciding on what mutual funds and when to buy them can be an easier task than finding an appropriate answer to the question “When should I sell?”

Places to Buy Mutual Funds

When deciding to buy a mutual fund, you should be very careful to whom you give your money. There are several entities that represent a bad choice for the purchase of mutual funds.

Definition of Net Asset Value - NAV

Net Asset Value (NAV) represents the current value of a mutual fund’s share. In order to calculate it first subtract the fund’s liabilities from its assets.

Benefits of Mutual Funds

Despite the fact that mutual funds are mostly composed of stocks, a clear distinction between the two is worth making since there are several advantages that are not observed in stock investing.

Investment Portfolio Diversification

To better understand the role of diversification in mutual funds, imagine you are a player in the Wheel of Fortune Show and you have two wheels with different potential outcomes in front of you.

Mutual Fund Definition and Mutual Fund Basics

Firstly, a short and clear explanation of both stocks and bonds should be given in order to provide a better understanding of their correlation with mutual funds.