Wednesday, January 2, 2019

Types Of Mutual Funds To Invest Your Money In Mutual Funds And Mutual Funds Schemes,PPT,STOCKS And With Example (mutual fund types)

Types Of Mutual Funds To Invest Your Money In Mutual Funds And Mutual Funds Schemes, PPT, STOCKS And With Example

Types Of Mutual Funds To Invest Your Money Mutual Funds And Mutual Funds Schemes,PPT,STOCKS And With Example

Types Of Mutual Funds To Invest Your Money In Mutual Funds And Mutual Funds Schemes, PPT, STOCKS And With Example

Types Of Mutual Funds To Invest Your Money Mutual Funds And Mutual Funds Schemes, PPT, STOCKS And With Example


Are you want to know the types of mutual funds to invest your money in mutual funds. but do you know there are many types of mutual funds for investing your money? if you don't know these types of mutual funds then don't worry.

Today in this article i will give you a brief knowledge about Types Of Mutual Funds and best types of mutual funds.  And after reading this article you will definitely get knowledge about types of mutual funds and you will never ask again that what is mutual funds and what types of mutual funds are best to invest your money.

so let's get started,

Types Of Mutual Funds To Invest Your Money In Mutual Funds
If you're looking to invest your money such as your investment capital and you want some exposure to the stock market in the hopes of your money appreciating and getting some return but you're a little bit more hands-off you might have been looking at mutual funds. Now in this article, I want to give you some insight behind mutual funds some index funds and also ETFs and what are some of the advantages disadvantages and what to look for when you're looking at these different types of opportunities to invest.

So first off what is a mutual fund a mutual fund basically takes and cherry-picks different stocks it takes maybe a little bit of Google, a little bit of Apple, a little bit of ExxonMobil, little bit of Procter & Gamble and it puts and creates this basket of stock with your investment capital with your friends.

investment capital now their promise to you is going to be that howe's a big company we're educated we know more than you and we can beat the S&P; 500 or we can beat the market much more than you could do on your own and that way you get better returns than just market returns this is typically the pitch that they perform for most people that are looking to invest their money is that hey give us your money we'll take care of it and we will just charge you a 1% management fee.

so even though on paper this 1% sounds great in reality they have a lot of expensive they have to pay their money managers they have to pay the fees in order to do the transactions they have to send out material to you or the advertising that they do for everybody else all these things add up and the cost of business is expensive it's not going to be cheap for them just because they're a big company so you need to always look at the hidden costs associated with doing business with them.

now one other point I want to give you insight about with mutual funds remember their number one goal their number one goal no matter what they tell you or the thing that they care the most about is going to be number one themselves then - maybe their job or their company and number three.

Maybe you if you are lucky so the best interest that typically most humans have is the self-interest and the same thing goes with mutual funds no matter what tell you they may say hey we're going  to take care of your money as if it was our own but when their job is on the line remember they're doing this as a job when their job is on the line they're not going to care about you the same way they don't care about your money the same way that you will care about your money you're going to care about your money much more so than any way that they will now after mutual funds evolved a little bit out came these things called index funds.

so now rather than them managing your money and getting your group of money and actively managing it now you have these index funds which are a little bit more passive so it's kind of like you giving them let's just say $1,000 and they put it in this index fund.

which is kind of like a basket of stocks and they're not really being traded on a week to week or month to month basis they kind of sit there in this basket of stocks and you may have like a dividend basket of stocks you may have a high-growth basket of stocks and they may get adjustments from time to time.

But in general it's an index fund that's just a group or a basket of stocks and there's a lot less fees associated with that as we continue to evolve out came a ETFs and ETFs are basically exchange-traded funds again it's a basket or pool of stocks.

now you can get an ETF on the S&P; 500 such as the spiders or the IWM or the qqq's there's a lot of different ETFs out there and you can even buy ETFs on the mutual fund ETFs that they now have available now each one of these different components whether it's the mutual fund the index fund or the ETFs are cater towards different people and they have different risk and reward profiles.

so for example if you're really hands-off person you may want the mutual fund of course it's going to be more expensive.

there's not going to be a lot of involvement from you they just handle your money and you get what you get sometimes it outperforms a little bit sometimes you make a little bit other times you don't make anything at all in fact sometimes you take a little bit of a loss.

because nothing is really guaranteed in this world index funds, on the other hand, is if you want to be a little more active if you want to just continuously contribute let's say a hundred dollars every month or a thousand dollars every month.

And you want to maybe cherry-pick a few things and finally, ETFs are people for who are actually fully active in the stock and people that want to go ahead and do the actual trades themselves now you will have fees associated with all of these including the ETFs.

where you pay the Commission's and the fees to do the transaction but it's going to be a lot less, for example, $5 to make the trade with an ETF rather than maybe with a mutual fund you'll have minimums you'll have a 1% fee.

which imagine if you have a million dollar account that 1% starts to get pretty high so all these things you need to take into account based on your needs and what you want to do with your money.

if you want it very flexible the ETF is the better route to go if you don't mind your money being tied out or tied up and maybe you won't be able to take it out for a certain period of time that a mutual fund may be the right way to go again they'll take care of your money.

but remember what I said they won't always do it in your best interest because they don't know you based on what you tell them that's what they're going to interpret and that's what they'll end up doing with your cash.

whether you make a little bit of money or you lose a little bit of money they don't care all right so let's take a look at the screen in I'll just give you some insight behind the active managed mutual fund or the index or even take a look at some ETFs and how you can set things up and maybe trade those or invest in those.

so here we are on the Vanguard investing funds page and this is the mutual fund so if go to the invest mutual funds you pull up this page now I'm using Vanguard just as a simple example but there's many other companies out there that do this type of thing and have active and index funds.

so just using this as a reference if you want to just give your money to someone then this is kind of how you go about searching and going through the process and maybe this will give you some insight so at the moment we have all of them checked and we have all the fun minimums checked as well we don't want to look at the closed funds and then we have the active index and all the risks.

so as you go through this you can see that we have the money market funds and then taxable tax-exempt the bonds you also have all these tax exempt ones the balanced funds which based on the target retirement date so say you know you want to retire around the twenty fifty what it does is in 2010.

it will have more stock and very few - no bonds as you start getting closer to this target retirement date then it'll adjust you'll have more and more bonds more and more money markets and safer investment so that's how you go about that is basically you pick this retirement date that you want.

and it'll automatically adjust year after year the risk for you which is pretty cool and interesting so I think that's one of the great approaches if you want to just put your money somewhere and forget about it it's a easy way to go about it so you have a lot of these other things and also you have the stock funds which might be something that you're interested in because then you can cherry-pick.

which thing or which investment is better or right for you you also have the mid cap small cap stocks and international funds as well and some global things and sector specifics so you can get very detailed into all these things depending how how much you want to pick or if you want to have two or three different things so for our sake let's just talk about the stock just because that's what we've been discussing and we'll do the active ones and we'll do the mid-range.

we don't want a very little list risk and very little reward we want something in the middle and we don't want the highest risk but the highest rewards so here comes nine matching funds that were able to pick and from this you can dig deeper and you can see that here's the name the ticker symbol.

if you want to look it up and a few other different results and what it's been doing now if you go to the name and you click it you want to see really what's in it here we are in the dividend growth fund now here it'll give  you a summary of what's going on and it'll also give you the ten largest holding.

so twenty-six percent of this fund is based on United Parcel Service United Health ace TG TJX United Technologies coca-cola Microsoft Lockheed and so forth so that makes up about a quarter of the of the holdings now as you go back and you look at the other funds so we'll have to recheck some of these things go to the active and let's just say we go to the growth and we take a look at the growth fund this one's a little riskier.

but it's got a little more reward and this one that you can see it has a whole different portfolio so ten largest holdings which make up 17.4. so you pretty much have to weigh your pros and cons based on your personal investment strategy and what you're looking to do if you're more of an active trader. you probably won't use this because you'll

want to trade actively yourself but if

you're just looking to put your money

somewhere then you know you take a look

at the active ones and that's

what they'll do they'll take care of

that for you if you're looking to do an

index fund which is a little different

then you uncheck the active you hit the

index and now you get something

completely different so this is a little

bit different so if you do the

high-yield dividend index again this

just functions and works a little bit

different and again now this index makes

up thirty-five point five percent of the

assets and here you get it appears that

it looks similar but you can see that

the percentage is different and the

breakdown is different Apple Exxon

Microsoft Wells Fargo Johnson & Johnson

G P&G; JPMorgan Pfizer and Verizon so you

have Verizon and there Pfizer and a

couple others that weren't in the other

one so the breakdown is going to be

different and remember that index funds

work and function differently than the

actively managed funds so so they're

going to be a lot of different types of mutual fund

investments so as you start looking

through this, you can see that this-this

are just the mutual funds based on

management okay so it's active or the

index okay so if we want to get to the

ETF's we'll go to investing Vanguard

ETFs and let's say choose your ETF up

here and then we'll go let's see

get specific ETFs or browse vanguards

complete ETF lineup there we go so here

you can see that were in ETFs and it

looks a little different you can see

that over here on the left that doesn't

have the management type because there's

going to be it's a whole different ball


it's an ETF and here again, you can check

market bond ETF stock ETF sector

specific international but again we'll

do stock because that's the most common

it's easy to get in and out of they're

usually very liquid and again we don't

want the outer edges just to make things

simple just to keep things in the middle

just to show you this example and of course

you can you can change things based on

your own personal risk and reward

preference then again we can go to Vig

which is the dividend depreciation and

you can take a look at the ETF and what

it is all about so it'll tell you the

chart it'll tell you again a month and

ten largest holdings and you can see

it's much different than some of the

other things that we showed before so in

here we have the PepsiCo coca-cola

Walmart Johnson & Johnson CVS Qualcomm

Exxon IBM 3m and United Technologies as

we go back and go back up we can take a

look at some others we can take a look

at the large-cap BV which is going to be

a little bit different and again you can

take a look at what it has all these

things the current market price that's

your per share price you have your risk

evaluation not that that means that much

I mean it just means that there might be

a little bit riskier investments

maybe a little more volatility in there

then maybe some other things like a bond

okay so that's what it means so here we

have sixteen point eight percent of the

total holdings we have Apple Exxon

Microsoft Google Wells Fargo Berkshire

Procter & Gamble and so forth some of

these ETFs have been around for quite a

while and others are new ETF so if you

want something a little bit more

longer-term and more stable over the

long-term then you may want to check one

it was incepted which is over here on

the inception date so here we are on

Charles Schwab now and I'm just going to

briefly show you the same exact thing

with that Vanguard does basically

there's a ton of companies out there

that do the same thing they basically

want your money in terms of a mutual

fund saying that they can beat the

market that's what it's all about and

that they have their index funds all in

one portfolio solution you know so you

can find a fund or you can get a sales

person to talk to you and try to get

they'll try to get your money and you

know they'll they'll give you some

screeners some criteria things that you

can look for as you can see this one's a

little bit more complicated they they

give you know a lot of check marks

and it confuses people and that's why

they call in and say hey you know what

do you recommend and they'll recommend

the ones that usually they make the most

money on or that you know they believe

that you know is in your best interest

but here we are on a selected list so

this is their selected list and you can

see numbers look green so they look good

I guess from their standpoint and it's a

good sales pitch that if they can keep

more green numbers here then by all

means that means it's a good thing

because more people will want to invest

if we click one of these funds and we go

to it you can see that here this is the

core equity SWA and X and there's their

chart let's see if they have they have a

percentage of their sectors and if you

click the top ten holdings again you'll

see the breakdown of what they have and

how they're doing in that in that stock

specifically so it'll be a little bit

different than then Vanguard of course

because that's their font it's the

Charles Schwab fund rather than the

Vanguard fund so they all have different


question is which one's going to give

you more it's going to depend on how the

performance goes and also not to mention

the management fees and so forth so

there's a lot of things to take into

account but you can see Charles Schwab

has their own mutual funds they have the

ETS as well so if you go to the ETF's

research over here then you can see here

they have a market cap Charles Schwab

ETFs now these ETFs you can go through

them to purchase it or if you want you

can just pop up your panel and you can

see that here's our SCH be a Schwab

Lluis broad market ETF and if I take a

look at the weekly you could go ahead

and just purchase this through your own

online broker and

not worry about it basically you would

pay $6 $8 for the transaction and then

you would own that fund or that ETF

rather than going through a Charles

Schwab so it just makes things a lot

easier sometimes they do allow you to

buy those funds for free for 5-7 dollars

but personally I don't I don't like to

get tied down with the big companies and

going through them I'd rather use my own

broker and that is because I don't like

reading all that fine print I know most

people don't and if you go through them

sometimes if your money is tied down why

bother deal with that here we

are on the wisdom tree ETFs and this is

again very similar to some of the other

things we talked about the wisdom tree

also has a lot of ETF so basically they

there's a lot of things that you can go

through and choose and cherry-pick but

really if you stick to one or two of the

main ones that we discussed you should

be fine if you're looking for something

like an ETF if you're looking for

something that's a little more active

through a mutual fund you're going to

have to do your own research because the

terms and everything changes

consistently and all those fees and

everything it's really going to be a

battle because they're competing for

your business like sharks they're

they're after your money because then

they have your money and they're able to

do whatever they want with it based on a

few of the recommendations and things

that you put it in but in general they

can do whatever they want now if you go

with an ETF it is a lot cheaper for you

most of the time because you pay your

five or six dollars to do the

transaction or ten dollars to do the

trade and that's it you're in the ETF

and when you want to get out you sell it

so it makes it very flexible if you're

able to just use the computer a little

bit and take care of your own investment

even if you want to just put it in let

it sit and forget about it you have a

lot easier approach because now you're

in control but on the other hand if you

have an active

mutual fund sometimes there's fees to

get in it

sometimes there's fees to get out of it

sometimes there's management fees

there's all kinds of things and

personally I don't care to read the

terms of service but nevertheless

there's a lot of options out there but

just understand that between these three

main things you have the active the

index and the ETF the ETF is going to be

the more hands-on person the active

Purse active managed fund mutual fund is

going to be for the person that just

wants to give somebody their money and

completely forget about it and maybe

hopes of getting a return at the end of

the year or in a couple years so their

cater to different people and different

styles of personalities so there you go

there's some insight for you about

mutual funds about index funds and some

ETFs again normally mutual funds the

actively managed mutual funds are best

suited for people that just want to put

their money someplace forget about it

and in hopes of getting a slight better

return but oftentimes they don't really

outperform the market and in fact some

of the management fees are quite

expensive the index funds are sometimes

a little bit better where if you're

interested to be a little more active

and you just want to put five hundred

dollars every month or a thousand

dollars every so often then sometimes

the index fund is a little better

because it mimics and it replicates kind

of an index they take either the S&P; 500

or the IWM the Russell and they try and

mimic those returns and finally if

you're interested to be a little more

active you're a hands-on person you want

to do the hands-on approaching you don't

mind spending five ten bucks and

transactions then you can just go ahead

and purchase the ETF now typically you

do have to do your own little bit of

homework some more insight and you do

have to be a little bit technology savvy

because you got to install the panel and

execute the trades but otherwise it's

not any more complicated than sending an

email to purchase an ETF so you just go

ahead purchase

the order based on the ticker symbol how

much you want the orders execute

it especially if it's a liquid ETF and

then you have that ETF in your portfolio

you can always buy more when you're

ready but of course you do have to do

your own management and due diligence

with that so really comes down to from

less active and kind of a person with a

hands-off approach to a person that's

more hands-on approach is the way that

you really need to decide what to do

with your money or your capital thanks

for joining me I hope you found this

article helpful and if you want to see

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final words :
these types of mutual funds are for investing your money into mutual funds. if you think that these types of funds are not suitable for you then please comment. what types of mutual funds has top featured in this article. And I think that the market risks of mutual funds fluctuate many times so please make sure that these types of mutual funds are better to be chosen to investments.

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