Pages Menu
Categories Menu
Affiliate Websites

Posted by in Credit Loan

Mutual Funds to Avoid

Mutual funds are a great way for most investors to invest in stocks, bonds and the money market. Some are better than others, and some should be avoided altogether.

You should not be trying to hit a home run when you invest in funds. Rather, your objective should be to participate in the markets to get overall returns that are higher than you can make at the bank, and more consistent than you could get by playing the stock market or bond market on your own.

To give you some perspective … historically, over the long term stocks and stock funds have returned about 10% to 11% a year, bonds closer to 5% to 6%, and the safest investments (like T-bills and savings at the bank) have averaged about 3%. Over the past 50 to 80 years, inflation has averaged about 3% a year as well.

Avoid mutual funds that do not have well-established track records. Why take a chance on a fund that has not proven itself? If you want to take chances, play the market. Every mutual fund’s literature tells you when the fund was established, and shows its historical performance.

Avoid funds with erratic performance records. For example, you want your largest stock holding to be a stock fund that pretty much tracks the stock market. If the market was up 10% for the year and dividends averaged 2%, you should want to feel confident that your fund returned about 10% to 15% … rather than maybe +25% or maybe -10%.

Avoid stock funds that are “non-diversified”, unless you are investing in a sector or specialty fund that concentrates on a specific sector (like gold stocks or real estate stocks). You want the lion’s share of your stock money to be in DIVERSIFIED funds that invest in many different companies across the different industry sectors.

Avoid mutual funds with high yearly expenses and fees! Expenses are taken directly from fund assets, and work to lower investors’ returns. A mutual fund with low expenses might return 10% in a given year. An identical fund charging over 2% a year for expenses would return closer to 8%. A bond fund with high expenses could return 4% in a given year instead of 5% due to high expenses and fees.

Finally, avoid mutual funds that have sales charges whenever possible. These sales charges are called LOADS. The most popular mutual funds that have sales loads are called Class “A” funds. Here’s how they work.

You write out a check for $ 20,000 to invest in a stock fund with an up-front load (sales charge) of 5%. Right off the top $ 1000 goes to pay sales charges. Your investment is worth $ 19,000.

Once you really understand mutual funds and investing, you can save a lot of money by simply buying NO-LOAD funds on your own. Now you pay NO sales charges, and can invest with LOW expenses once you know the ropes.

After all, a penny saved is a penny earned.

A retired financial planner, James Leitz has an MBA (finance) and 35 years of investing experience. For 20 years he advised individual investors, working directly with them helping them to reach their financial goals.

Montel Williams Illuminati Puppet Pimping Pay Day Loans for Money Mutual “Loan Sharks.” *SUBSCRIBE* for more great videos daily! Click “Like” “Favorite” and sound off in the comments.

Mark Dice is a media analyst and author who, in an entertaining and educational way, reveals the effects of our celebrity obsessed culture and the manipulative power of mainstream media.

Mark’s YouTube channel has received over 100 million views and his viral videos have been mentioned the Fox News Channel, CNN, the Drudge Report, TMZ, the New York Daily News, the Washington Times, and other media outlets around the world.

He has been featured on the History Channel’s Decoded, Ancient Aliens, and America’s Book of Secrets, Conspiracy Theory with Jesse Ventura on TruTV, Secret Societies of Hollywood on E! Channel, America Declassified on the Travel Channel, and is a frequent guest on Coast to Coast AM, and the Alex Jones Show.

Mark Dice is the author of several popular books on secret societies and conspiracies, including The Illuminati: Facts & Fiction, Big Brother: The Orwellian Nightmare Come True, The New World Order, Facts & Fiction, Inside the Illuminati, The Resistance Manifesto, and Illuminati in the Music Industry, which you can order now in paperback from or download the e-books through Kindle, iBooks, Nook, or Google Play.

While much of Mark’s work confirms the existence and continued operation of the Illuminati today, he is also dedicated to debunking conspiracy theories and hoaxes and separating the facts from the fiction; hence the “Facts & Fiction” subtitle for several of his books. He has a bachelor’s degree in communication from California State University.

He enjoys causing trouble for the New World Order, exposing corrupt scumbag politicians, and pointing out Big Brother’s prying eyes. The term “fighting the New World Order” is used by Mark to describe some of his activities, and refers to his and others’ resistance and opposition (The Resistance) to the overall system of political corruption, illegal wars, elite secret societies, mainstream media, Big Brother and privacy issues; as well as various economic and social issues. This Resistance involves self-improvement, self-sufficiency, personal responsibility and spiritual growth.

Be sure to subscribe to Mark’s YouTube channel, checkout some of the previous videos and Playlists, and look him up on Facebook, Twitter, and Instagram.
Video Rating: 4 / 5

Find More Money Mutual Articles