Submitted by Dan Crimmins on Wed, 11/27/2013 - 3:00pm
Buying top-rated mutual funds, in hopes of reaping turbocharged performance in the future, is not smart. A better idea: Using index funds or exchange-traded funds that cover broad asset classes – and skip the ratings.
The classic proof is the failure of actively managed funds to beat indexes covering their specialty areas, according to Standard & Poor’s.
Submitted by Walid L Petiri on Tue, 11/26/2013 - 9:00am
Socially responsible investing (SRI) is increasingly popular, with more and more mutual funds offering this ideals-based style. It is a diverse field, more known for what they avoid (some won’t invest in cigarette companies, others bar defense contractors, etc.) than what they embrace (pro-green or promoting diversity, for instance). But are they good investments? Actually, the answer is … yes.
Submitted by Rick Kahler on Mon, 11/18/2013 - 12:00pm
Index funds, which track the entire market or portions of it, do best for investors over time. These funds are called passively managed, because their components get selected automatically, according to index movements. But you shouldn’t be passive about managing them. You must be very active.
A fundamental principle I preach is that having a core of passively managed mutual funds is the foundation of successful long-term wealth building. I practice that principle, as well: About 75% of the securities in my personal portfolio are passively selected.
Submitted by Roger Wohlner on Thu, 11/14/2013 - 9:00am
The ETF price wars are heating up. This is good for investors in that it acts to keep fees down for exchange-traded funds. But simply because an ETF has a very low cost is not a sufficient reason for you to buy it.
Fidelity late last month fired the latest salvo in the ongoing price wars with the introduction of a number low cost sector ETFs. Charles Schwab, TD Ameritrade, Blackrock, Vanguard and others also participate in this price war in one form or another over the past couple of years.
Submitted by Ray Ferrara on Fri, 10/25/2013 - 9:00am
Investors still are dubious about stocks, even though the market has had a decent, if sometimes bumpy, ascent since March 2009. That’s troublesome, because stocks over the long haul are the best way to increase your portfolio and build a decent retirement.
Submitted by John Bussel on Wed, 10/16/2013 - 9:00am
Interest rates are up. If they continue to rise, how can you protect your bond portfolio? A good answer is to concentrate your holdings in intermediate maturities, with terms between three and 10 years.
They will suffer less than longer-term bonds and give you flexibility. In fact, the intermediate strategy works in all seasons, even when rates are dropping. Bond prices rise or fall inversely with rates.
Submitted by Eve Kaplan on Tue, 10/15/2013 - 9:00am
Follow investment gurus to avoid investment mistakes. When things seem unsettled, a trio of these savants offer timeless advice you should heed.
Such words of wisdom are especially appropriate amid current turbulent circumstances: a rocky bond market that perhaps signals the end of a 30-year bull run, U.S. stocks recently hitting new highs, troubling overseas developments such as Syria’s civil war and the ongoing fight in Congress.
On the other hand, the variables change, but crises and problems always occur and always (at least temporarily) affect markets.
Submitted by Roger Wohlner on Thu, 10/10/2013 - 9:00am
Everybody’s got an opinion about investing. Here’s what a former exec of one of the world’s biggest mutual fund companies says about Wall Street shocks, dice-rolling fund managers and tricks of timing the market.
Submitted by Eric Hutchinson on Mon, 10/07/2013 - 9:00am
Some investors regularly trade their holdings; some invest and leave their portfolios alone. How much to tinker after you build a portfolio is an age-old question. The answer: Find a balance between the two strategies.
Submitted by Lon Jefferies on Fri, 09/27/2013 - 9:00am
Target date funds, increasingly popular since the 2008 market downturn, are not the panacea that some think. Their cookie-cutter approach to allocation may not fit your particular post-work picture. You may need other income sources to supplement them when you retire.