 Spend money wisely?? |
| so i got 60 dollars 4 christmsa.. wat should i do with it??should i save it up, or buy something small???... |
|
 I am suffering with huge losses in Stock Market? |
| I m suffering loss approx 3lacs , What I hav to do .... some of my friend suggesting me to quit immediately , some said only this is the way u can recover ur losses. (There is huge losses , I m not ... |
|
 Should I sell my Home depot stock back to Home depot for the $37 per share they are offering? |
| Home depot has offered to buy back shares from their stockholders BUT they offered more money a few weeks ago and then sent out a letter saying OOPS we will give you beween $37 and $42... |
|
 Making online money? giving surveys is it true or scam? |
| there are so many offers to make money give survey online etc what there is any thing actual.... |
|
 Banking querey? |
| If you have a substanstial amount of money to put into a bank lets say 3-5 million can you negioate a preferential interest rate or must all banks follow the same rate? will banks negiotiate their ... |
|
 I'm interested in Forex trading, but am overwhelmed by the material out there. ? |
| I need some help with reviewing brokers, educational sites and if there are advisors, services or systems that work.... |
|
 Is it just me or is everyone broke? |
| I can't keep money in my pocket. Im Shopaholic.... |
|
 Who is the richest man was ever on the earth? |
Additional Details
one day brothers and sisters and no body gave me the right answer if no body gave the right answe I will give the best answer for mirmir even she is ... |
|
 Which stoks should I buy? |
| I am going to invest a small amount for first time, but I do not know where to find a good investment?... |
|
 If I am 30 years old and making about $10-12,000 per month, what is the best way to invest ( aggresively )? |
That would mean investing in stock, not day trading!
Additional Details
I hate saying what I do because people always tell me I'm full of it.... |
|
 I have 500.00 to invest... Where should I invest it? |
| I want to make cash safe and secure. I want to invest 500.00 and make a quick profit without to much risk. Any recommendations? I am almost in foreclosure and need help. I dont want to borrow more ... |
|
 Irecieved E mail tell me that....? |
| I win in South Australian lottery 450,000,00 Us dollars it is true?... |
|
 I need 50 bux.? |
I need 50 bux.
For what you ask? I need to invest it to make more ... |
|
|  |
Mark | Why is investing in Mutual Funds bad? |
i heard I should not invest in mutual funds, but invest in Stocks and Bonds only
why is this? why are mutual funds bad? thank you. i'm 24 and starting to invest into my 401k and am contributing a very high % to my retirement plan and want to make sure i only invest in the right asset mix...60% company stock and 40% bonds is good? thanks for your help.
Additional Details
also, are there fees you have to pay to invest in a mutual fund or something? why is this? thanks. |
 |
 
emilights
|
I am an affiliate financial planner, I hope this helps
Why is investing in Mutual Funds bad?
> Because for some people it is too risky, and for some people its returns are too low.
I heard I should not invest in mutual funds, but invest in Stocks and Bonds only.
> Based only on your age (not yet 30), yes (corporate bonds and stocks), for addition you might want to consider your risk profile, since the risk of investing in stocks is higher than that of mutual funds.
want to make sure i only invest in the right asset mix...60% company stock and 40% bonds is good?
> There are lots of kinds of asset mix. Like if you invest in mutual funds and stocks, you want to avoid mutual funds that invests mainly on stocks.
are there fees you have to pay to invest in a mutual fund or something? why is this?
> Yes, there are fees. The fund managers need money too. |
|
Rick B
|
I'm not sure where you heard that, but it is WRONG. You can't pick stocks better than a professional mutual fund manager. You can't possibly diversify enough with a handful of stocks.
I would advise against listening to whomever told you that.
If you are 24, I would invest 80 or 90% in stocks. I would put at least 20% of that into international stock funds. |
|
Terry
|
The only people who think mutual funds are bad, are paid financial advisors that earn commissions from the sales of stocks and bonds.
There are very few individual investors who should be buying stocks or bonds. Instead, look at mutual funds with low management fees - less than 0.5% per year. Or consider EFTs instead.
Look at the index funds first - index funds model a particular stock market index, and are run by computer. This keeps the cost very low, and also avoids emotional decisions that will not always match market sentiment.
Over the long haul (10 plus years) an index funds is highly likely to match the market; whereas with individual stock picks, you will almost certainly make less than the market.
Look at Vanguard, Fidelity, or T Rowe Price mutual fund families - these are good starting points. Vanguard have several highly rated funds, with some of the lowest management fees in the industry.
On your specifics:
Most mutual funds have a management fee which is typically less than 1% per year. You want to find funds that are below 0.5%, otherwise these higher management fees will eat away your profits.
Some funds have front- or end-loads. These are fees you have to pay to get in to, or out of, the fund. DO NOT buy a fund with either a front- or end- load. These are simply not good value.
Buying stocks are subject to a cost per trade. If you trade in a large number of stocks, the costs for buying and selling will become prohibitive.
Financial Advisors either charge an hourly rate, or a percentage of your holdings. First, I don't believe anyone really needs a financial advisor; read all you can, and learn to make your own decisions - you are the one most interested in your financial success. If you do decide to hire one, make sure they are NOT paid on any kind of commission, but are simply charging an hourly rate for their advice.
On mix: you should stay almost entirely in stocks at your age. after 50, start moving more into bonds, and buy the time you are 60, you want a 70% stock, 30% bond split. This is merely a guide; you will see when you do more reading that this ratio is affected by your age, your risk tolerance, and your plans for retirement age/post retirement income.
Lastly, NEVER have more than 4% of your total net worth in a single stock. If you do, you are carrying substantial risk. If you want to buy stocks, then you MUST diversify to spread your risk. This is another reason why mutual funds are better - when you buy shares in a mutual fund, your money is being used to buy small amounts in dozens, or even hundreds, or separate stocks, which significantly reduces your risk. |
|
self-employed
 |
Do NOT invest 60% in company stock. You should invest no more than 10% in your company stock in your 401(k) and no more than 3-5% in any one company in all of your investments combined. Mutual funds are not bad. They allow you to diversify among many stocks and bonds which reduces your risk. Fees are generally higher in mutual funds than individual stocks, but if a company goes bankrupt and you owned the stock, you'll lose a lot more than a small fee. Mutual funds in nonretirement accounts can generate some taxes that stocks don't, but that is irrelevant in your 401(k). |
|
Independent_guy
|
It is not bad or good it all depends on how risk averter you are. However please remember this important economic rukle: the more risk you take (like stocks) the more money you are EXPECTED to make. |
|
Wes
 |
Yes, there are fees. Each fund has an expense ratio (usually from 1% to 2% a year). If you buy funds from a full service broker, you must pay the broker a load (it's like commission) too, which is a lot.
The problem with mutual funds is that the managers might not make money or beat its benchmark (70% of mutual funds lag the S&P 500 each year). The mutual fund also may have too many assets which can drag its performance (like Fidelity Magellan).
Mutual funds are neither bad nor good. If you don't have a lot of money or you don't know what stocks to buy, buy mutual funds. |
|
The Mutual Fund Investor
|
Hello,
I have heard this argument and it generally has no fundamental basis. A mutual fund is nothing more than a collection of individual stocks and bonds. Stocks can turn out to be bad investments just as easily as mutual funds can turn out to be a bad investment. In fact, the average investor is better off having a professional mutual fund manager make the investment decisions.
The stocks versus mutual funds debate can be looked at as if it were a mathematical problem, 2+2=4, any other answer makes no sense.
There can be advantages to investing in stocks over mutual funds like tax efficiency and control, but these issues do not affect most people. Further, investment decisions are normally more important tax decisions.
Your asset allocation should be based on your risk tolerance, time horizon, financial circumstances and preferences, with risk tolerance being the most important. With that said, 60% company stock is rather aggressive. If your company does poorly, you returns will suffer.
I hope this helps.
Michael A. Weiss, CFA
The Editor
The Mutual Fund Investor
http://www.mutualfundinvestor.net |
|
tim t
|
You should know the meaning of mutual funds, before you choose to invest in mutual funds. These funds are a type of security that can be traded on the stock market, allowing shareholders to buy and sell shares in the funds. The revenue generated by purchase of shares is used by mutual fund manager to buy more shares of specific stocks, bonds, and other market securities and money market instruments.
http://debts-to-wealth.com/category/Guide-to-Mutual-Funds.html |
|
lunalumen90
|
Mutual funds aren't bad, but they aren't free, either. Some of them get a bad rap because they charge too much and don't perform well compared to the indices. But there are index funds that don't charge a lot and there are funds that are a good balance between cost and performance.
Beware of having too much money in one stock, even if it is your company. That raises your risk. If buying their stock is the only way to get matching funds or you get a discount, then hold for the minimum and diversify if you can.
Morningstar.com has everything a beginner needs for learning and for research in bonds, stocks and mutual funds.
Also, at your age you could be 80 - 100 % in stocks.
Congrats for starting so young!! |
|
iwasnotanazipolka
 |
For a young investor, choose mutual funds. There are many good companies - and choose a no-load fund, which requires no fees. Janus, who I invest with, is totally no load, charging about 1% for administrative costs. Janus is just one of many good funds. They have a wide range of funds, both high risk/high return and more conservative funds. |
|
kokopelli
 |
I would guess you have been talking to a stock broker, and of course he would say that mutual funds are bad. In mutual funds there are various forms of sales charges and maintenance fees. Stock brokers have fees, but I bet he did not tell you about that. |
|
Abhi
|
http://www.fool.com/school/basics/basics04.htm |
|
MARIE K
|
Actually, this is the best time to invest in real estate. Buying your own home and living in it for the next 5 to 10 years will bring you good equity. Mutual funds, depending on the manager, has performed well overall. There are many opinions about that. - You have to read, read, read. Your idea of mixing your investment portfolio is a good idea. Make sure you do a lot of research. |
|
| |
|
| | |
| Questions List |
Answers | Last Post
| | | |
12 | 31 minutes(s) ago
| | | |
12 | 1 hour(s) ago
| | | |
12 | 6 hour(s) ago
| | | |
12 | 9 hour(s) ago
| | | |
12 | 10 hour(s) ago
| | | |
13 | 2 day(s) ago
| | | |
12 | 2 week(s) ago
| | | |
12 | 2 month(s) ago
| | | |
12 | 7 month(s) ago
| | | |
12 | 12 month(s) ago
| |
|
Homepage 
Financial
Forum 
Investing 
No Spam
Adult 
Gambling
Unfinished
Deception
Plagiarism
Not English
