Showing posts with label funds. Show all posts
Showing posts with label funds. Show all posts

Friday, March 8, 2013

Benefits of Mutual Funds

Professional Money Management
  • Develop investment strategy and chooses investments that best match the fund objective.
  • Decision based on extensive knowledge and research of market conditions and financial performances.
  • Adjust investment mix as economic conditions change.
  • Diversifies portfolio to reduce risk.
Accessibility
  • Easy to buy either through an investment professional or directly from an investment firm.
  • Generally offered as investment selection in 401(k) plans and other employee benefit plans.
  • Offer wide variety of services to meet shareholder's needs.
  • Variety of investment minimums allowing participation at virtually any dollar amount.
Tax Advantages and Economic Opportunity
  • Allow investors to contribute to and benefit from investment economy.
  • Potentially tax deductable or tax deferred if used within certain qualified retirement plans.
  • Potentially reduces taxes by reducing tacable income.

Saturday, March 2, 2013

Mutual Fund Planning

Mutual Funds, as with other investments, are affected by changes in exonomic trends and cycles. The value of investments may rise or fall as the stock and bond markets fluctuate. Understanding certain investments concepts and tactivs can hely you lessen risk and maximize opportunity.

Objective of Money Market Funds

Taxable Money Market Funds - Seekt o provide income on cash reserves, while preserving capital and maintaining liquidity, through high-quality money market instruments. Pays dividends monthly.

Tax-Exempts Money Market Funds - Seek to provide income exempt from federal taxes while preserving capital and maintaining liquidity. Pays dividends monthly.

Monday, February 25, 2013

Objectives of Stock / Equity / Index Funds

The stock market is probably one of the best option for people who want to be involved in hiqh yielding investments. Studies show that the stock market has consistently outperformed all other types of investments over the long-term. However, in a rapidly changing economic and political environment, owning an dmonitoring a portfolio of stocks are required more analysis and effort than tthe average person can handle.

The conviction to purchase a security, the patience to hold on to it as long as needed, and the wisdom to sell at the right time are qualirites that lead to success in the stock market. These qualities, however, are developed through years of experience and require abundant information and capital resources. For the common investor, these qualities can only be obtained through the services of professional fund managers or through investments in actively managed equity funds.

Growth Funds - Seek to provide long-term growth of capital by investing in growing, profitable companies.

Total Return Fund - Seek to provide long-term growth of capital and income primarily through investments in common stocks.

Value Fund - Seek long-term capital growth by investing in diversified stock portfolio of undervalued companies.

World Equity Fund (Global) - Seek long term growth of capital by investing in stocks and bonds with significant exposure to countries that have developing exonomies and markets.

Index Funds - Seek long-term capital growth by investing in a diversified portfolio of common stocks with returns similar to a specific index, such as the S&P 500.

Sector Funds - Seek to provide high growth of capital by concentrating assets in equities in one sector of the economy such as biotech, telecommunications, precious metals, etc.

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Sunday, February 24, 2013

Basic Types of Mutual Funds

Long Term Funds
  • Stock /Equity - funds that invest in the variety of stocks
  • Index - equity funds that attemt to mirror the performance of specific index, such as the S&P 500.
  • Bond - funds that invest in the variety of bonds.
  • Hybrid - funds that invest in a combination of stacks, bonds and other securities
Short Term Funds
  • Money Market - funds that invest in securities that generally mature in one year or less (very liquid).
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Sources from International Marketing Group

Saturday, February 23, 2013

Maximum Investment Returns

Mutual Funds are among the most popular and versatile financial planning vehicles in the United States. They can be useful in achieving the long and short term goals yourve established for your family by completing your personal financial lifestyle strategy (FLS).

- 82.8 million Americans own mutual funds.
- A typical shareholder invests through employer-sponsored retirement plans and has long-term financial goals such as retirement.
- There are more than 7,300 mutual funds representing a wide variety of investment objectives.

A Mutual Fund is an investment company that combines money from individuals and invests in a diversified portfolio of securities. Each investor is a shareholder who buys shares of the fund. Each share represents a proportion of ownership in the funds assets.

There are different types of mutual funds, and each type is a designed to benefit from either a short-term or long term investment strategy.

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