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7 Great No-Load Mutual Funds for Retirement Portfolios

7 Great No-Load Mutual Funds for Retirement Portfolios

7 Great No-Load Mutual Funds for Retirement Portfolios

Many actively-managed mutual funds carry higher fees than passive index funds and exchange traded funds (ETFs). That isn't necessarily a bad thing, assuming investors are able to identify the … Continue reading at

3 Northern Mutual Funds for a Steady Portfolio

Founded in 1889, Northern Trusts manages assets worth over $ 177 billion (as of Mar 31, 2019) based on assets raised in the country. The company generally focuses on funds that have long-term … Continue reading at

Lipper U.S. Weekly FundFlows Insight Report: Despite Market Turmoil Funds Take In Net New Money

Equity funds had positive net flows of $ 3.1 billion for the week. Lipper's fund asset groups (including both mutual funds and exchange-traded funds) had net inflows of $ 21.1 billion for the fund … Continue reading at

Mutual Funds Trading

Boost for insurers, mutual funds: Reforms that IRDA and SEBI really need to focus on

Insurance, mutual funds reform: IRDA and SEBI will need to design products that are not only scalable for themselves but also are of significant value to their customers. The insurance and mutual … Continue reading at

Diversify your portfolio by investing a portion in US-focused mutual funds

Domestic equity mutual fund investors have had a rather rough ride over the past couple of years. For many, investments made even through the SIP (systematic investment plan) route have declined in … Continue reading at

Mutual Fund Trading Abuses: SEC Consistently Applied Procedures in Setting Penalties, but Could Strengthen Certain Internal Controls
The BiblioGov Project is an effort to expand awareness of the public documents and records of the U.S. Government via print public…

Mutual Fund Trading Abuses
The BiblioGov Project is an effort to expand awareness of the public documents and records of the U.S. Government via print public…

Mutual Funds: Trading Practices And Abuses That Harm Investors
The BiblioGov Project is an effort to expand awareness of the public documents and records of the U.S. Government via print public…

Mutual Funds Trading

Groww's Lalit Keshre On Getting Millennials To Save By Simplifying Investments, Mutual Funds

Investing in India has remained largely traditional owing to lack of trust and awareness on the part of consumers. However, with the increasing digitisation in many aspects of everyday lives … Continue reading at

* Mutual fund families

How I’d run a fund company
If I were running a mutual fund company, I’d set up as many different funds as possible. I’d set up a fund that invests solely in sporting goods, and others for computers, biotechnology, and banks. I’d also set up funds that use complicated computer analysis and funds for value and growth investing.

And I wouldn’t stop there. I’d try to set up so many funds that no matter what, in all kinds of economic scenarios, I’d always have a fund that would be at the top of the performance rankings.

Of course, I’d also have a lot of dogs at the bottom of the list, but nobody headlines the cellar dwellers. Plus, by using this strategy I always can say legitimately that I have the number one fund in my advertising, and this will provide a constant flow of new customers into my fund family. Of course I won’t advertise that I have a lot of bottom feeders as well.

This strategy probably will attract a lot of attention and new customers for me. It may not be the best strategy for my customers, but hey, didn’t I disclose to them that investing in mutual funds involves risks?

Advantages of Fidelity Investments
Although I just hypothetically described how I’d run a mutual fund company, this is a pretty accurate description of how America’s largest, most profitable fund company already is run.

No tape about mutual funds would be complete without mentioning Fidelity Investments. Fidelity is by far America’s largest mutual fund organization. Fidelity’s history goes back to the 1930s, and Fidelity currently manages over 0 billion dollars in over 200 funds.

By most accounts, Fidelity offers three things : good performance, broad selection, and good customer service.

With help from its mammoth Magellan fund, Fidelity’s stock funds have historically outperformed the market, although by just a hair. If you’re looking for the rewards that may come with aggressive trading and investing, Fidelity is a good place to look for it.

Fidelity is also the place to look for a broad selection of funds. If you want to speculate on certain industry sectors, look to Fidelity. Fidelity offers so-called “select” funds which invest only in certain industries like technology or pharmaceuticals.

Because of the focus on one industry, these “select” funds are often at the top or bottom of the performance heap. If you like grabbing nickels from in front of a steamroller, this is your ticket.

Fidelity also offers a discount brokerage where you can invest in individual stocks or even mutual funds offered by other companies. Finally Fidelity has good service with 24 hour telephone service and scores of walk-in branches around the country.

Disadvantages of Fidelity
Still, with all Fidelity has to offer, I have trouble giving it a ringing endorsement. Fidelity, to me it seems, is more interested in selling its mutual funds and making money than with prudently managing people’s assets.

Because of his stake in the privately held company that runs Fidelity funds, Ned Johnson has become a multibillionaire and one of America’s richest people. Fidelity has also sought to further its influence in the financial world by publishing Worth magazine.

Fidelity has a number of fairly risky funds, and fund managers are encouraged to do almost anything to produce high returns. Most of the Fidelity general purpose funds are given wide latitude in their investments. This wide latitude sometimes allows the fund to spice up its return, but it can lead to trouble.

Fidelity has load and no-load funds
Fidelity likewise includes a confusing array of load and no-load funds. Not surprisingly, the more popular and successful funds have loads. To its credit, though, most funds purchased through retirement accounts don’t have loads.

Fidelity likewise includes a special breed of funds called the Fidelity Advisor Funds. These funds are marketed by brokers and other salespeople, and carry a load of about 4 percent.

Although Fidelity has a good record in domestic stock picking, it has a lackluster reputation in bonds and international equities. However, Fidelity’s largest domestic stock funds recently have underperformed market averages.

So although I can’t give a ringing endorsement of America’s largest fund family, you could do a lot worse than Fidelity. Overall its loads are low, and the ongoing management fees are reasonable. If you like risk and the rewards that may come with it, consider Fidelity for some of your equity investments.

Copyright 1997 by David Luhman

Mutual Funds Trading

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