Birgit Kuester January 23, 2020 Mutual Fund
These are just two of several companies that provide ratings on these funds. Research them and take the time to evaluate the past performance before going with one of these companies for investment advice. When you rely on fund ratings to provide the needed investment information you should be sure to look at more than one ratings system. You want to follow the ratings company that has the most successful record of predicting the future potential of mutual funds.
There are thousands of mutual funds available. Thousands. But you only need groups with as few as ten and maybe at the most a hundred funds in order to give you good investment choices. In addition to the groups based on "source" you can create groups based on class or industry. You can do this by going to any of the broker sites or magazines I discussed previously and sorting or filtering on these criteria, for example: • Bonds - for a constant conservative investment • Dividends - for a constant, possibly conservative, cash flow of 3% - 8%. • Domestic - to find the best of what is happening in the USA. • Foreign - to invest in the best or emerging oversea markets
If any of this scares you, rethink your investments. The asset allocation model where they show you a pie chart with so many stocks, so many bonds and maybe 3% cash is a failure. This was designed for institutions with 100% investible assets, not for individuals with lifestyle needs and expenses. You will never see any real estate in that pie chart, yet for most Americans, their home is worth more than their other investments
Watch the indexes, and watch your funds if they have symbols. Fixed Funds Fixed Funds, sometimes called Guaranteed Funds, are known for steady, predictable growth in the long term. They carry Guaranteed Interest Contracts underwritten by insurance companies, and because of that fact are commonly considered very low risk funds. This includes the additional protection of the funds from garnishment or attachment by creditors or assigned to anyone else, except in the case of domestic relations court cases dealing with divorce decree or child support orders QDROs; i e , qualified domestic relations orders .
Another thing to keep in mind is not to buy loaded funds. These are funds that have sales charges attached to them. If you purchase these types of finds, you will be paying sales charges on top of other fees. Do not forget to overlook the mutual funds risk factor. If the fund looks to unstable over the years, or shows signs of it being too risky, do not get involved. And also check with the SEC to make sure the company is decent and has a good reputation.
The obvious advantage of mutual funds is that they allow you to pool your money with other investors and leave the decision making to someone else. You do not have to spend your days conducting in-depth analysis of stocks and other investments. You simply invest in a mutual fund and let the manager make the decision for you. That is the theory, but of course we all know we are going to have to do some research before we invest in a mutual fund. How much mutual fund analysis is appropriate before making an investment?