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Mutual Funds Are Risky

Mutual Funds Are Risky

Mutual Funds Are Risky

We invest in mutual funds like millions of others, and thank goodness markets still allow the risk without which there can be no reward. Whether a mutual fund holds stocks, bonds or something more exotic, it is an investment product, not a bank account. Continue reading at wsj.com

Choosing Between ETFs And Mutual Funds: Strategy, Then Structure

The four key differences are investment strategy, trading flexibility, accessibility and costs. Investors who value index based strategies, greater trading flexibility, and open fund access may prefer ETFs. Those who prefer traditional actively managed … Continue reading at seekingalpha.com

3 Precious Metal Mutual Funds to Buy as Gold Shines

A safe-haven appeal made gold one of the few popular investment spaces at the start of this year when the markets turned upside down. While the major benchmarks – Dow, S&P 500 and Nasdaq – are striving to return to positive territory, gold has witnessed a … Continue reading at nasdaq.com

Mutual Funds

The 3 Best American Funds for Value Investors in 2016

Value investors seek equities with a low perceived value reflected in market prices. Mutual funds for value investors have fund managers who make purchase decisions based on the expectation that holdings experience a price increase due to market corrections. Continue reading at investopedia.com

Saft on Wealth: Contrarian Hedge Funds Earn Keep; Momentum Mutual Funds, Not So Much

Feb 3 (Reuters) – Two thirds of hedge funds create genuine value through contrarian strategies, choosing well among cheap and beaten-down stocks, according to a new study of their holdings. In contrast, two thirds of mutual funds are playing the momentum … Continue reading at m.wealthmanagement.com

Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor
NATIONAL BESTSELLER! “Cogent, honest, and hard-hitting-a must read for every investor.” -Warren E. Buffett Praise for Common Sense…

Morningstar Guide to Mutual Funds: Five-Star Strategies for Success
GUIDE TO MUTUAL FUNDS SECOND EDITION “Picking actively managed mutual funds is no mean challenge. And as the recent era underscore…

Bogle on Mutual Funds: New Perspectives for the Intelligent Investor
John C. Bogle, founder of the Vanguard Group of Investment Companies, has built a $100 billion mutual fund company on princi…

Mutual Funds

Sebi lens on dividend stripping has mutual funds in a bind

Rich investors who poured money into dividend plans of a clutch of equity mutual funds in the last few months are a miffed lot. Reason: these fund houses are yet to write the hefty dividend cheques they had verbally promised the investors. The dividends … Continue reading at economictimes.indiatimes.com

Anoop Bhaskar takes over as Head, Equity at IDFC Mutual Fund

IDFC Mutual Fund Thursday announced the appointment of Anoop Bhaskar as Head, Equity. Formerly the head of equity investments at UTI MF, Bhaskar takes over from Kenneth Andrade, who quit IDFC MF in June last year. With successful stints at Sundaram Mutual … Continue reading at moneycontrol.com

SAFT ON WEALTH-Contrarian hedge funds earn keep; momentum mutual funds, not so much: James Saft

(James Saft is a Reuters columnist. The opinions expressed are his own) Feb 3 Two thirds of hedge funds create genuine value through contrarian strategies, choosing well among cheap and beaten-down stocks, according to a new study of their holdings. Continue reading at reuters.com

Thrivent Mutual Funds gets a rebranding

Thrivent Mutual Funds has a slick new logo and website and accompanying advertisement push that executives hope will appeal to a wide array of investors. Local agency Martin Williams Advertising revealed the refreshed brand earlier this week. According to … Continue reading at startribune.com

T. Rowe's Retirement Funds Deliver Strong Performance

T. Rowe Price Group's (TROW) growth in assets under management in 4Q was primarily driven by the performance of its funds. For the three-year period ended December 31, 2015, 80% of the company's mutual funds across their share classes outperformed … Continue reading at marketrealist.com

* When rates rise, how risky are bond funds? Investors have been allocated bonds into their portfolio, unaware of what happens to the values when bond yields rise.
*** Please take advantage of my free ebook offer. Get a free copy of GROW: How To Invest Like The World’s Best Investors: https://riverbend.leadpages.net/grow/ ***

Typically, investors have been using bond funds as part of their individual asset allocation.

As interest rates have fallen since the early 1980s (bond prices and interest rates have an inverse relationship), investors have not faced a period of rising interest rates.

Rising interest rates are a bond funds worst enemy. A small increase in yields can have a significant impact to a bond funds performance.

During past periods of “small” interest rate hikes, it was not uncommon to see bond funds with 10-20% declines.

When the longer term trend of bond yields reverse, bond funds could see much larger declines.

Since a typical asset allocation (60/40) may include a large allocation to bond mutual funds, investors who are unaware of what happens to bond prices in a rising interest rate environment could face much larger losses than anticipated.

Please take advantage of my free ebook offer. Get a free copy of GROW: How To Invest Like The World’s Best Investors: https://riverbend.leadpages.net/grow/

Mutual Funds

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    • John Rothe
    • February 4, 2016
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