Fund Hot News

Frequently I am asked about my opinion on the value of mutual funds. Since the early 1980’s their popularity has grown exponentially where many investors feel they are simply the only choice available. However by and large they have many disadvantages that are frequently rarely discussed:

Taxation: Taxation for mutual funds is arcane to say the least. Beware of buying a mutual fund in a taxable account in late summer through October until after it declares Capital Gains. For instance, you may buy a fund in a taxable account in June but you need to understand you’ll be liable for taxes generated by the fund for the entire year up to and including from the date of purchase. If the fund should drop in value, beware you may still be liable for capital gains taxes despite your loss. Continue reading ‘Are Mutual Funds a Good Investment?’ »

In today’s crazy interest rate world, investors are searching high and low for more interest income. One place to find it is in high-income bond mutual funds called HIGH YIELD bond funds. Let’s look at June of 2009. If you required a real high degree of safety, you could get a bit over 2% a year if you tied your money up for 5 years in a bank CD. If you were willing to accept a moderate level of risk, many bond funds were yielding (paying) 5% or 6%. High yield bond funds were also available from large mutual fund companies that offered yields of 10% and more.

How can a bond fund pay interest rate yields of 10% when interest rates are near historical lows? These high yield bond funds invest in lower-quality bonds, sometimes referred to as “junk”. Hence, the term often used to describe these mutual funds is JUNK BOND FUNDS. At the one extreme you have high quality “investment grade” bonds and bond funds. These are issued by entities with very high credit ratings, and the risk of default to investors is low. Continue reading ‘High Income Bonds and Bond Funds’ »

For most average long-term investors in 2011 and beyond, the best investment funds will still be mutual funds – both stock funds and bond funds. But in putting together your best investment strategy your best bet is to also add a few funds of a different sort to your portfolio for greater diversification.

Over the long term a mix of about 50-50 in stocks and bonds has worked to give investors diversification, and mutual funds have been the best investment funds to keep life simple while investing in both asset classes. In 2011 and going forward the best investment strategy will not be quite so simple. The folks who loaded up on bond funds during the financial crisis to avoid the risk associated with diversified stock funds are having second thoughts. With the threat of higher interest rates and inflation investors have sold bond funds to buy stock funds. What are your best investment funds now? Continue reading ‘Best Investment Funds For 2011’ »

Incoming search terms:

• mutual funds interest rates 2011
• mutual fund interest rates 2011
• hot mutual funds 2011
• best investment funds
• best investment for 2012 philippines
• mutual fund 2012 philippines
• INTEREST RATES FOR MONEY MARKET FUND IN PHILIPPINES 2012?
• best performing bond funds 2012 philippines
• best investments funds 2011