Comments on: Mutual Funds Aren’t For Losers http://www.investorgeeks.com/articles/2006/10/24/mutual-funds-aren%e2%80%99t-for-losers/ Learning and sharing investment knowledge. Mon, 13 Oct 2008 00:17:09 +0000 http://wordpress.org/?v=2.0.4 by: BloggerJacks > Mutual Funds Are NOT For Losers http://www.investorgeeks.com/articles/2006/10/24/mutual-funds-aren%e2%80%99t-for-losers/#comment-138297 Mon, 13 Aug 2007 07:48:06 +0000 http://www.investorgeeks.com/articles/2006/10/24/mutual-funds-aren%e2%80%99t-for-losers/#comment-138297 [...] I read Kimber’s article about Mutual Funds, and then read Steve’s article on mutual funds. Steve, my dear sir you are wrong! [...] […] I read Kimber’s article about Mutual Funds, and then read Steve’s article on mutual funds. Steve, my dear sir you are wrong! […]

]]> by: Phil http://www.investorgeeks.com/articles/2006/10/24/mutual-funds-aren%e2%80%99t-for-losers/#comment-114557 Sat, 07 Jul 2007 12:03:12 +0000 http://www.investorgeeks.com/articles/2006/10/24/mutual-funds-aren%e2%80%99t-for-losers/#comment-114557 Navi, you should sit in cash for a few months in my opinion. The market is looking very toppy and since it made its new high, it hasn't picked up steam like it has done previously. If the market regains its strength, think about dividing your portfolio into 4 chunks and buy 4 ETFs. One should be a big cap domestic, one a mid or small cap domestic, one a large cap international and then one in an emerging markets fund. The most risky is the emerging markets fund - they have had a huge run over the last few years. However, you should have some exposure to asia and countries like Brazil. The US domestic market is looking a bit sickly, proped up by huge amounts of credit and leverage, but with a poor economy. With that in mind, I would consider switching your mid / small cap domestic to a resource weighted fund. The world isn't making any more oil and if inflation takes off, commodities are a safer bet. I would steer clear of financial stocks e.g. banks, brokers / mutual fund companies and investment banks. Good luck! Phil Navi, you should sit in cash for a few months in my opinion. The market is looking very toppy and since it made its new high, it hasn’t picked up steam like it has done previously.

If the market regains its strength, think about dividing your portfolio into 4 chunks and buy 4 ETFs.

One should be a big cap domestic, one a mid or small cap domestic, one a large cap international and then one in an emerging markets fund.

The most risky is the emerging markets fund - they have had a huge run over the last few years. However, you should have some exposure to asia and countries like Brazil.

The US domestic market is looking a bit sickly, proped up by huge amounts of credit and leverage, but with a poor economy.

With that in mind, I would consider switching your mid / small cap domestic to a resource weighted fund. The world isn’t making any more oil and if inflation takes off, commodities are a safer bet. I would steer clear of financial stocks e.g. banks, brokers / mutual fund companies and investment banks.

Good luck!

Phil

]]> by: navi http://www.investorgeeks.com/articles/2006/10/24/mutual-funds-aren%e2%80%99t-for-losers/#comment-113746 Fri, 06 Jul 2007 11:11:02 +0000 http://www.investorgeeks.com/articles/2006/10/24/mutual-funds-aren%e2%80%99t-for-losers/#comment-113746 i am very new to mutual fund, actually i want to invest 80000, and i don't know whether it is safe to invest. If yes then please tell me the funds in which i can invest. i am very new to mutual fund,
actually i want to invest 80000, and i don’t know whether it is safe to invest. If yes then please tell me the funds in which i can invest.

]]> by: jj http://www.investorgeeks.com/articles/2006/10/24/mutual-funds-aren%e2%80%99t-for-losers/#comment-12424 Wed, 15 Nov 2006 00:49:55 +0000 http://www.investorgeeks.com/articles/2006/10/24/mutual-funds-aren%e2%80%99t-for-losers/#comment-12424 I can totally agree with that. A lot of people don't have the time to put into managing their portfolios. This is a major problem when it comes to the stock market. I do agree that there are many ways to invest your money to increase your retirement chances. Personally, I think you should utilize all that you can. I don't believe there is a wrong way, because have a series 6, 7 and 63 license, I do understand that it's up to the profile of the investor. It's call suitability. I can totally agree with that. A lot of people don’t have the time to put into managing their portfolios. This is a major problem when it comes to the stock market. I do agree that there are many ways to invest your money to increase your retirement chances. Personally, I think you should utilize all that you can. I don’t believe there is a wrong way, because have a series 6, 7 and 63 license, I do understand that it’s up to the profile of the investor. It’s call suitability.

]]> by: Alex http://www.investorgeeks.com/articles/2006/10/24/mutual-funds-aren%e2%80%99t-for-losers/#comment-12422 Wed, 15 Nov 2006 00:26:52 +0000 http://www.investorgeeks.com/articles/2006/10/24/mutual-funds-aren%e2%80%99t-for-losers/#comment-12422 I guess it's more of a question of your individual situation. I wouldn't say that mutual fuds are bad, but I would say that there are better options - certainly better options for people who can put the time in to manage their portfolios. I guess it’s more of a question of your individual situation. I wouldn’t say that mutual fuds are bad, but I would say that there are better options - certainly better options for people who can put the time in to manage their portfolios.

]]> by: jj http://www.investorgeeks.com/articles/2006/10/24/mutual-funds-aren%e2%80%99t-for-losers/#comment-12409 Tue, 14 Nov 2006 20:37:53 +0000 http://www.investorgeeks.com/articles/2006/10/24/mutual-funds-aren%e2%80%99t-for-losers/#comment-12409 It's really interesting when I read blogs such as this one. I sit back laughing hard at the posts and I'm thinking that most of you must be very young. Although you make some sense in your reasoning, you send a bad message to basic investors. The average individual today has no knowledge about investing, not to mention the ups and downs of the stock market. This leads me to mutual funds. I have a considerable amount of money invested in mutual funds and I have done better than most because of two reasons. 1. I started early. 2. I make contributions regularly (monthly). I was introduced to mutual funds in 1983 when a mentor of mine invested $15,000.00 in a SB Aggr Growth Fund. He also contributed $100.00 each month and he is still doing so today. He informed me last month that his Fund (LM now) has a balance of over $400,000. That's close to a half of a million. That's more than most people I know have even if they are investing in stocks or index funds. So be careful of talking negative about mutual funds. I also have that fund in my portfolio and it's has done very well for me along with all my other funds and yes I also invest in stocks. So are mutual funds that bad??? I think not. JJ It’s really interesting when I read blogs such as this one. I sit back laughing hard at the posts and I’m thinking that most of you must be very young. Although you make some sense in your reasoning, you send a bad message to basic investors. The average individual today has no knowledge about investing, not to mention the ups and downs of the stock market.

This leads me to mutual funds. I have a considerable amount of money invested in mutual funds and I have done better than most because of two reasons. 1. I started early. 2. I make contributions regularly (monthly).

I was introduced to mutual funds in 1983 when a mentor of mine invested $15,000.00 in a SB Aggr Growth Fund. He also contributed $100.00 each month and he is still doing so today. He informed me last month that his Fund (LM now) has a balance of over $400,000. That’s close to a half of a million. That’s more than most people I know have even if they are investing in stocks or index funds. So be careful of talking negative about mutual funds.

I also have that fund in my portfolio and it’s has done very well for me along with all my other funds and yes I also invest in stocks. So are mutual funds that bad??? I think not.

JJ

]]> by: Alex http://www.investorgeeks.com/articles/2006/10/24/mutual-funds-aren%e2%80%99t-for-losers/#comment-10626 Fri, 03 Nov 2006 19:33:28 +0000 http://www.investorgeeks.com/articles/2006/10/24/mutual-funds-aren%e2%80%99t-for-losers/#comment-10626 I'm not a huge fan of mutual funds either - however, I do own 1 in my Roth IRA, and 1 in my 401(k). But aside from those, which make up about 9% of my liquid net worth, I don't like them. I did a post recently on what I do with cash - the no load mutual fund is a neat idea for your emergency cash, but use a money-market account for what I keep in my trading account when it's not invested. You can fin dit here if you're interested: http://www.thealexblog.com/2006/10/24/what-should-i-do-with-my-cash/ I’m not a huge fan of mutual funds either - however, I do own 1 in my Roth IRA, and 1 in my 401(k). But aside from those, which make up about 9% of my liquid net worth, I don’t like them.

I did a post recently on what I do with cash - the no load mutual fund is a neat idea for your emergency cash, but use a money-market account for what I keep in my trading account when it’s not invested. You can fin dit here if you’re interested: http://www.thealexblog.com/2006/10/24/what-should-i-do-with-my-cash/

]]> by: Phil John http://www.investorgeeks.com/articles/2006/10/24/mutual-funds-aren%e2%80%99t-for-losers/#comment-9196 Fri, 27 Oct 2006 04:33:31 +0000 http://www.investorgeeks.com/articles/2006/10/24/mutual-funds-aren%e2%80%99t-for-losers/#comment-9196 The problem is working out when we are about to hit a down market so you can SELL SELL SELL. :D Phil The problem is working out when we are about to hit a down market so you can SELL SELL SELL.

:D

Phil

]]> by: John S. Rhodes http://www.investorgeeks.com/articles/2006/10/24/mutual-funds-aren%e2%80%99t-for-losers/#comment-9141 Thu, 26 Oct 2006 22:45:12 +0000 http://www.investorgeeks.com/articles/2006/10/24/mutual-funds-aren%e2%80%99t-for-losers/#comment-9141 Here's something related. When markets are moving up a low cost index fund is probably a smart move. In a down market, an active fund might make more sense: http://tinyurl.com/ygbxjh p.s. There are 8,000 mutual funds. Oh boy. Here’s something related. When markets are moving up a low cost index fund is probably a smart move. In a down market, an active fund might make more sense:

http://tinyurl.com/ygbxjh

p.s. There are 8,000 mutual funds. Oh boy.

]]> by: Mutual Funds ARE for Losers! on InvestorGeeks http://www.investorgeeks.com/articles/2006/10/24/mutual-funds-aren%e2%80%99t-for-losers/#comment-9080 Thu, 26 Oct 2006 19:18:37 +0000 http://www.investorgeeks.com/articles/2006/10/24/mutual-funds-aren%e2%80%99t-for-losers/#comment-9080 [...] Kimber made a post about why Mutual Funds Aren’t for Losers, which was a good article and I see her point of view, however, in this case, I thought I would show the other side of Mutual Funds, which, in my opinion, suck to the point where vacuums should be named after them, or maybe they could rename the Chicago Cubs the Chicago Mutual Funds.First problem is, they are overly diversified, bringing your risk down, but also bringing down your profits. Hugely bringing down your profits. Bringing down your profits to the point where you have to wonder why you bought it in the first place. You’re essentially saying, “I don’t care what I get, as long as I get something. Sometime. Maybe.” According to the Christian Science Monitor: “The average US diversified equity fund grew 6.7 percent in 2005, the third upside year in a row, according to fund-tracker Lipper Inc. “ [...] […] Kimber made a post about why Mutual Funds Aren’t for Losers, which was a good article and I see her point of view, however, in this case, I thought I would show the other side of Mutual Funds, which, in my opinion, suck to the point where vacuums should be named after them, or maybe they could rename the Chicago Cubs the Chicago Mutual Funds.First problem is, they are overly diversified, bringing your risk down, but also bringing down your profits. Hugely bringing down your profits. Bringing down your profits to the point where you have to wonder why you bought it in the first place. You’re essentially saying, “I don’t care what I get, as long as I get something. Sometime. Maybe.” According to the Christian Science Monitor: “The average US diversified equity fund grew 6.7 percent in 2005, the third upside year in a row, according to fund-tracker Lipper Inc. “ […]

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