Home     About Us    Contact Us     Contribute     Privacy
Investing
Stocks
Bonds
Mutual Funds
Biz
Credit
Career
College
Economics
Tax
More
 
 
Marketplace
Related Articles
More
Related Definitions
Related Categories
Tip of the Day

Tip of the Day Your Career Is Your Most Valuable Asset

Your Career Is Your Most Valuable Asset - Building a career should take the highest precedent in your life. You will never have another investment that can...

read entire tip

Recently Added
Other Great Sites
 

No-Load Mutual Fund Investing

What are you thinking when it comes to your no load mutual fund selections? Are you saving pennies and sacrificing dollars? Are you spending your time looking at expense ratios, analyzing Morningstar ratings and searching for funds with low fees and no 12b1 charges? If you are like most people, you know these things in and out. You've spent hours evaluating them, and your chosen mutual funds cost little to purchase and maintain. But they still don't perform to your hopes and expectations.

So, why is this happening? Because this kind of investing focuses on cost as opposed to value. Investors with this philosophy have usually interviewed numerous advisors. But instead of trying to find someone suitable with a sensible approach, they only want to know who has the lowest fees. That's like going to the cheapest auto repair shop and getting the best price, but your car still doesn't run well.

Then there are the investors who call or email me wanting a recommendation on a no load mutual fund. They want one with no 12b1 charge, but they completely ignore the issue of how the fund might perform.

Both of these kinds of investors spend their time trying to save pennies and in the process they are losing dollars. Instead of falling into the penny wise, dollar foolish trap, here are some ideas that will assist you in evaluating the end profit rather than just the short term saving.

  1. Shift your focus from penny pinching to looking at the big picture: What can a mutual fund or an advisor do for you, not how much does it cost? Why? If you buy a given no load mutual fund at the right time and it gains a tidy 15% for you over a 6 week period, would you really care about the costs? If a mutual fund-or an advisor for that matter-can give you superior performance and an increase of several percentage points over your bargain price pick wouldn't you pay an extra 0.25%?
  2. Consider finding a fee-based investment advisor who uses a facts-based methodology and has a track record indicating those kinds of returns. For example, in my own practice I used a trend tracking approach to get my clients into the market on April 29, 2003. Plus, our research and homework led us to recommending funds that gained anywhere from 11.50% to 22.00% over the following 6 week period. How did you do during that time? Do you think any of my clients care whether one of these funds has a small 12b 1 charge? Or whether they have the lowest expense ratios in the industry? I know they don't.


The bottom line is to look at costs as balanced by performance and that's where you find value. Then seek true value not simple savings, enjoy healthy dollar-level returns and don't sweat the pennies.

Ulli Niemann is an investment advisor and has been writing about objective, methodical approaches to investing for over 10 years. He eluded the bear market of 2000 and has helped countless of people make better investment decisions. To find out more about his approach and his FREE Newsletter, please visit: www.successful-investment.com.

 

Discuss It!

discount codes said:

Itâs a tremendous post. I am truly grateful for this blog and I was in fact looking for something impressive like this should stay longer here, read all the post very nice posting you have

bestessay scam said:

I read a observance piece that you upright permit to read. It was written by a disciple in my style moreover it is hardly external of this mankind. Goes to substantiate that straight along so numerous slack singles rushing to wear treatise dutys, there is inactive several skill sinister in them.

Thesis Writing Service said:

"We are No. 1 in Dissertation Writing Help & Writing Service - Thesis Writing Help and Writing Service. You can also hire us for top quality dissertations. "

Assignment Help said:

Our website is No. 1 in UK for Assignment Help. You can also hire us Thesis writing in UK, Dissertation writing and other Assignment Writing Services and Help

Nursing Ebook Writing said:

Our website is No. 1 in Nursing Essay Writing and Nursing Assignment Help. Feel free to hire us for Nursing Homework Help and Assistance.

Bayesian R Programming Assignment Help said:

Bayesian R Programming Assignment Help Bayesian Assignment Help Introduction We at RProgrammingHelp have actually developed ourselves plainly in the area by providing services of projects.

Corona App Development Service said:

Corona Application Development Service Corona App Development Introduction A mobile video game is just as excellent as the video game engine you utilize. Even though there is rather the rangeâ¦.

lexus rx450h car covers said:

What can a mutual fund or an advisor do for you, not how much does it cost?

http://pixwords-help.org/fr/canadien said:

I beginning late watched your site back i are all around looking through which on a coordinated basis.

bonus di benvenuto senza deposito said:

Casino Credits, Free Spins, Loyalty Points, Loyalty Multipliers and more. Everyoneâs a winner! Come by and celebrate the New Year with luck on your side.

pay per install network said:

I'm gladsome to mature so more serviceable and informative assemblage on your website.

mario kart ds rom said:

Google while searching for a related topic, your website came up, it looks great. I have bookmarked it in my google bookmarks.

192.168.1.1 192.168.1.1 192.168.1.1 192.168.1.1 said:

Great artcile, yet it would be better if in future you can share more about this subject.

best urology surgeons in Virginia said:

I have been getting a lot of useful and informative material in your website.

kitchen seating ideas said:

The two level space effortlessly juxtaposes industrial, stone walls with far more modern style components to develop a multidimensional aesthetic.

traders insurance said:

Morningstar ratings and searching for funds with low fees and no 12b1 charges? If you are like most people, you know these things in and out.

whatsapp tracker said:

I think you've made some truly interesting points.Keep up the good work.

see here said:

Ask authorities for tighter management on the passage of ships with radioactive cargo and poisonous substances which will alter the surroundings.

Pokémon Go Pokémon Account Cheapest said:

Iâm inspired with the surpassing and preachy listing that you furnish in such little timing.

iragoldadvisor said:

That's like going to the cheapest auto repair shop and getting the best price, but your car still doesn't run well.

Most Popular Articles
Most Popular Definitions
 
Daily Definition

Definition of the Day Minority Ownership

Minority Ownership - Minority Ownership is less than fifty percent ownership of a corporation voting stock, or not enough ownership to control the company operations. From a purely accounting point of view, parent company which owns less than one hundred percent, but more than fifty percent of a subsidiary presents...

read entire definition

 
 

 

 

Home     About Us    Contact Us     Contribute     Sitemap

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Copyright © 2009 TeenAnalyst.com