Make Money By Mutual Funds

MAKE MONEY BY MUTUAL FUNDS FACTORS DETERMINING SUCCESS OF INVESTMENT A fund with high costs must pertorm better than a law-cost fund to generate the same returns The tund's sales charges, tees, and expenses Even smal differences in fees can create large ditlerences in returns over time. Impact of the fund on your TAX You will be taaed for the capital gains distribution even i you get a negative return. ind put the dintribution timing se you can time your investment is the fund The age and size of the fund Newly created or smal unds sometimes have excellent short-term performance they itvest in only a smal number of stocks. As these funds increase the number of stocks, each stock has less impact on the fund's perfarmance making it more aitfiut to sustain inital results. The fund's risks and volatility The more voutie a fund. he Nigher the Investment risk Recent changes in the fund's operations. Fund's portfolio turnover rate Operational changes such change in investment strategy or investment aoviser can attect future fund performance. A fund that rapidly buys and ses secrtes nay penerate higher trading costs and capita gains taaes %$4 Assess how the fund will impact the diversification of your portfolio Success of yeur vestnents depends on the amount invested in ach of the major auet ciasses stocka, bonds, and canh- rather than on one particular security. Consider how that fund affects the overal diversification of your investnent portfole. TIPS FOR MAKING MONEY Identify Investment Objectives and buy stocks in line with those Investors shouid be asked to descrite their inestment ooals Insurance, returns, . Buy This Year's narhing steck market, Fund Portfolio When the entire stock maret er sectors of the narket, ajust or sell att, last year's portfollo may deciine faster than the overall Indes. so-called igh beta should perform wel. e Allocating Your Funds Rule of thumb Sutract your age from 100 and put the resulting percentage in stocks the rest in bends. Invest 10% to 25% of the stock portion in International secur ties Shaen S% of your stock portolo and SN off the bond portion invest the resulting 10% in resl estate investment truats (REI Diversify Within Investment Categories Once you've diversiled by putting your assets into different categories. yau need to diversity again, you need to have a lot of siferent types of stocks in that pertion ef your portfelie Indes funds sheuld bea core companent at your porttola They charge lower esperses are nore ta efficieet, and most active mutual funds underperform the SEP indes. When buyinga stack we efen inagine ho high might rise while rarely considering hon Set stop limits, not price targets far t might a. Price targets should be skipped entirety If a stock continues to dimb and does not grow to dominate vnur perttola, it should be kept and not traded ana Use a Mutual Funds funds. Cost Calculator se it figure out the invester's lees and epenses of difterent Buyers Beware Unike ather typen of investments, mutual tunds are not imured by the FDIC 9. Sources t morey.on o LL RLRindes. tp enyfinarciaplan comtinancaplan hem htpwww.mymoneydesign conpersonalfinance-avings-budgetingpersonalnanciaiplensample tp gude.com/2011/0top-10-nancalplanning pinonciolpian aboutcomiodipersonafinanceaulesothuno hn of-thumb hmi http www.netplaces comretinement planningigetingtatadicalculating how-nuch-to-ave hem p tigude.com2011/0stop-10nancial plenning nules-of unb he Presented By Designed By moneytips