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 INVESTING

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 INVESTING

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



game



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



breakdowns



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



a more great article like this one then you



can click one of the thumbnails below



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sticking with me and remember to do what



you love contribute to others but most importantly live life abundantly I'll see you next time



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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1 comment:

  1. Thanks for the valuable information... Mutual funds have a variety of funds so that we could buy the right fund which is suits for us and make money returns.
    how to invest in mutual funds
    Financial planners in Chennai
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    ReplyDelete