Lux Investing
which is the best mutual fund to invest?
I am planning to invest in Mutual funds. I got to know that LIC or MAX new york life insurance is best. Is it so?? Can someone help me
Public Comments
- I would rather see you invest in a 401k plan that any reputable employer should provide. This way, you won't get eaten up by fees, which many Mutual Funds carry. Also, use a Roth IRA for Income Tax purposes to get as much of your investment sheltered from taxes. If you must invest in Mutual Funds, then don't make the same mistake many others make. People tend to chase the funds that have shown better returns, when the market gyrations tend to favor those stocks that haven't done well in the past, thus favoring those funds who have done poorly in previous years. The reason this occurs frequently is because big money managers decide to invest in stocks that belong to certain groups, usually around the time a new year approaches. Currently they favor traditional stocks related to commodites and precious metals since there are strong indications of inflationary pressures which can be damaging to most companies. Your best bet with mutual funds is to pick a well respected name, like T. Rowe Price, and be capable to shift your investments around each year within that company's various types of funds, without getting additional fees charged. I can do as much with my employer's Investment plan, although there aren't as many good choices available as with some big name mutual funds. Again, you must focus on their fees, because they do like most banks today do, charge hidden fees that could reduce a substantial part of your return. I hope my in depth description of the investment world was of help.
- Most mutual funds follow the S&P 500 or Russell 2000 index and achieve similar returns to these indexes. SPX and IWM are ETFs that one tenth the value of the index. By buying a ETF you lower your overall cost due because you do not have to pay management fees.
- On an overall basis, I am not a fan of mutual funds. Most of them have high management fees and some have sales loads. I would recommend opening a retirement account with several investment options, besides just mutual funds. Good Luck
- I personally recommend Sun Life of Canada. My mother and I put aside a fixed amount of our income on a monthly basis and invest it in their Balanced Fund-Type of Investment.
- I would recommend people-to-people lending. It's a relatively new concept that can enable a substantial return on investment if you properly identify risk factors. ROI can easily be maintained around 10%, with little to no correlation to the stock market. Follow the links below to see for yourself, and get more information. Basically you loan money to people like a bank does. Not convinced? Banks and underwriters are in business because they make money from loans, and lots of it, and these are some of the wealthiest people in the world. As a lender, it works kind of like e-bay. You identify listings (borrowers), and view their financial information. You see their credit score, income, current debt load, etc., and use this information to decide if you want to bid on the loan. When bidding, you simply enter the lowest possible interest rate your willing to give to that individual and bidding proceeds until the loan is fully funded (or not). Loans are always over a 3 year period, and they provide all of the loan servicing and collection services having that cost built into the borrower’s service fee. The nice thing about it is you can perform detailed historical analysis of all loans serviced through the system, using factors such as credit grade, employment history and income, along with other information that a bank uses when you get a conventional loan. This allows you to identify only the best loans, and see the expected ROI associated with only the criteria you are interested in. Also, it’s a great way to borrow money. If you’re looking to fund a business startup or other venture this is a good place to start and get a competitive rate. This is a really cool concept that I would definitely recommend that you at least research further through their website. Use their historical performance tool to see the results for yourself. Performance analysis tool is here: http://www.prosper.com/lend/performance.aspx?referrer=lender1980x General information here: http://www.prosper.com/join/lender1980x
