Mutual funds are collective investment vehicles which pool money from the public, make investments and distribute surpluses either in the form of dividends or the surpluses are reflected in the form of a higher Net Asset Value (NAV) of the scheme. Mutual funds act as a pooling agent that collects money from various small investors and invests those funds in the market. The returns are distributed according to the scheme of the mutual fund.

An offer document is issued by a mutual fund containing proper details of the scheme, it’s investment horizon and class of securities in which it intends to invest. After the issue the collective money is pooled together to constitute a fund. The fund is managed by a fund manager who takes all the major investment decisions. A trust takes care that the mutual fund investments are in accordance with the scheme of the fund and that the fund is being managed in the interest of investors. (more…)

Everyone knows that the first quarter of 2009 turned out to be the scariest time for a stock investor. Most of people lose their money in the stock market. And now, they are afraid to invest more money in the stock market. But investing is no longer optional for Americans.

Today, everyone must invest. You must invest if you are to reach for your dreams, if you are to have the life you want. You must invest in case you lose your job or become divorced or widowed or want to educate your children. And, of course, you must invest to have the money to do the things you want to do in retirement. Successful investing requires a plan and a strategy

If you are just starting out
Discipline with your plan is the key factor. Set up a plan to invest a certain amount of money each month. Take it from your paycheck if you can. You can do it with a tax-deferred plan like a 403 (b) plan. It works particularly well for young people because the money is deducted from your paycheck before you ever see it. This is a great time to get started as an investor because the market has gone through such an extensive housecleaning. Time is on your side, and time is an important measure of wealth. (more…)

Most likely, our greatest fear as we are nearing or in retirement can be stated in 8 simple words: “Will I run out of money in retirement?” I can see the wrinkled nose and sweaty palms start to kick in as the stress levels rise after someone asks that question. Moreover, it’s not an easy quantifiable answer. It’s better addressed as “it depends” since it is dependent on various moving parts such as interest rates, inflation, withdrawals, etc. that muddies the income and savings waters.

As a Retirement Counselor, I have to sit back, take a deep breath, and then start to outline the events and circumstances that “could” result in a shortfall of money during your retirement. In this article, I will explain a few of these, along with some ‘traps’ and ‘potholes’ to look out for on the road to (and in) retirement. (more…)

For many investors the costs of investing money have been hidden within the plan. Investment bonds are a real example where the set up costs can easily exceed 10%. On the second page of an illustration you will see the cost of the product if you encashed the day after investing so be sure to read that.

Other investments can have large up front costs such as ISAs and unit trusts but many investors are missing a trick here as they don’t have to pay these costs of typically 5.25%. (more…)

Learning about the currency trading basics can be like pulling teeth, right when you think its about to get better it gets worse, much worse. Just remember all you’re really doing is trading money in one currency for money in another. You are just hoping that when you change it back its worth more than when you started.

We all know the value of the dollar is constantly changing. We hear this on the news that the value of the dollar is going up or going down. Currency trading can be a great part of a diversified portfolio for investing. Most people already know, or believe they know how the stock market works. However there are some distinctions between forex and stock or option trading. (more…)

Article 1, Section 8, Clause 5 of the Constitution of the United States of America grants Congress the “power to coin money” and Article 1, Section 10, Clause 1 specifies that “No state shall… coin money: emit Bills of Credit; make anything but gold and silver coin a Tender in Payment of Debt.”

The Constitution clearly states that money is to be coined and that only gold and silver coin (I.E. real money) is a tender in payment of debt. Note that Congress was granted the power only to coin money, not to print it. They were granted the power to borrow money, not to loan it.

Silver characterizes all six aspects of real money. It is divisible, durable, convenient, consistent, and has utility value, and cannot be created by fiat. Silver is used as a medium of exchange and as a store of value. It is indispensable, has tangible value, and is in limited supply. (more…)

Article 1, Section 8, Clause 5 of the Constitution of the United States of America grants Congress the “power to coin money” and Article 1, Section 10, Clause 1 specifies that “No state shall… coin money: emit Bills of Credit; make anything but gold and silver coin a Tender in Payment of Debt.”

The Constitution clearly states that money is to be coined and that only gold and silver coin (I.E. real money) is a tender in payment of debt. Note that Congress was granted the power only to coin money, not to print it. They were granted the power to borrow money, not to loan it. (more…)

If you earn more than what you need you may be searching for investment opportunities that can help you save more for your future. But your main problem is you don’t have sufficient knowledge to get your money rolling. Here are some surefire ways you can perform to learn how to invest money the right way.

First, you need to acknowledge that there are numerous investment categories in the market, so you must dedicate some time in understanding them. To limit your options, it’s vital that you know how much time and effort you can give in managing your investment. It’s important as well to set your preferred rates of return. Additionally, you should be ready to place your money in investment vehicles for a short time, although the proceeds are mediocre. (more…)

Investing your money need not be a stressful event for you. It is probably one of the smartest moves you can make to ensure that you receive a steady return of investment in order to safeguard your finances for the future. It is also one of the ways to ensure that you have a sizable nest egg later on when you need it, whether for your retirement or for other unforeseeable emergencies.

What are the best ways to invest money in? There are several factors to consider when investing your money that you need to be cognizant about. One important investment that you can make is to buy your own home. Paying rent out of your income for the rest of your life will be a huge drain on your finances. Owning your own real property whose values are likely to increase over the years is a very good investment indeed. If you are savvy enough to get rental property that can bring you a steady return of investment, then so much the better. (more…)

How have your investments been doing over the last year or two? Probably not so well. Would you like a way to prevent a repeat performance? Read on to find out how the absolute return approach to investing can help you grow your money quickly — yet safely.

There are three reasons why people lose money in the stock market, all of which are reduced or eliminated by absolute return investing: Emotional decisions, mutual funds, and the buy & hold approach to investing. Fortunately, the absolute return investing approach has the perfect fix for all three of them. (more…)