- Personal Finance
Advantages of Mutual Funds- Best online free Mutual Fund Video Lectures
Buy Gold when others invest in stocks
Mutual funds pool money from lots of investors to buy stocks, bonds and other type of investments. As an investor you own a small fractional interest in the underlying pool of securities (bonds, stocks....) purchased by the managers of your mutual fund.
Advantages of Mutual Funds
1. Diversification: When you buy a mutual fund you get instant diversification as each mutual fund in large number of stocks, bonds or both.This means, it reduces the risk involved.
2. Low starting investments: You can actually purchase a mutual fund if you promise to invest as little as $50 per month (I started with $50) or even $50 quarterly.
3. Sell when you want money: Unlike bonds that has maturity time (3-10 years), mutual funds can be sold any time you want. You can get the current net asset value of your share(NAV) any day the market is openfor trading.
4. No commission: There is no need for a brocker or advisor. You can buy the funds directly from the mutual fund company and there are no sales commissions (loads).
5. Reinvestment: if you want, you can arrange for your funds dividends and capital gains to be automatically reinvested in the funds or directed to other funds.
There are also other advantages like you can buy and sell most mutual funds by mail, phone or online. There are also mutual fund's customer service folks who will be glad to help you.
Before buying any mutual fund, it is useful to read the objectives, costs, past performance figures in the prospectus of the mutual fund. Reading the prospectus will be worth the time and effort.
Top Five Mutual Funds according to Forbes (2009)
Average Annual Total return
Yearly Portfolio turnover
Keeley Small Cap Value
Mairs & Power Growth
Stratton Small-cap value
Bloodied but resilient, these long-term investing standouts keep up with the pack in bull markets and lose less than their peers in bear markets. These funds were consecutively in 2-5 years of Honor Roll for the best performing funds.
Lectures on Mutual funds
At the end of this article you will see few best lectures on Mutual funds. If you like to read/ hear more I have also added few links to Amazon where you can buy books or DVDs for affordable price.