Can you trust Mutual funds on your money?

Answer 1

Maybe and maybe not. A lot depends on which mutual fund or funds you choose. They will not blatanly steal your money, at least not illegally. Some mutual funds have excessively high expenses and some mutual funds have excessively poor track records. Both are a very subtle form of untrustworthiness. Also there is the distint possibility that market conditions might cause an adverse effect on the value of the mutual fund holdings. It happens more frequently than investors would like. Sometimes mutual funds loose as much as 50% of their value during market corrections as happend to many during the 2001 to 2002 period.

If you choose funds from mutual fund companies that have a good track record and pay attention to the type of funds that you invest in, then in general over a long period of time 5 to 10 years, you can expect a trustworthy return. Companies to investigate are Fidelity, T Rowe Price, Royce Funds, and Vanguard. All have overall good records and some of their funds have in the past yielded outstanding results. But some have not also.

Answer 2

It depends on how trustworthy the company is. If you want my opinion, Vanguard and Fidelity are some of the most trustworthy firms out there. They have a long history of managing money, and have low costs.

If you are worried about bankruptcy, then don't. By definition, a mutual fund cannot go bankrupt because it is required to keep a dollar's worth of securities on hand for every dollar invested.

For more info about mutual funds, download my free book at http://www.invest-for-retirement.com and go straight to chapter 17

Answer 3

I usually do not.
Every year there are thousands of new funds. After including fees and expenses, the vast majority perform well below the market average. A bird could drop its seeds on the financial quotes page of the newspaper in the bottom of the cage and do better.
Most funds belong to a group (or family) of funds. The ones that do well are loudly heralded and advertised while the weak ones quietly slip into oblivion. The brokers lead you from last year's loser to next year's likely loser.
There are too many stories of people investing in 401k funds that became 201k funds.
That being said, there are some good ones. I would recommend AWSHX and NYVBX. They have done well for me over several years.

Answer 4

Do you trust a Doctor with your health?

Who's best interests is it that you're healthy? Doctors get paid when you're sick. You pay no one when you're healthy.

Back to money. It's in your best interests to take care of yourself financially rather than depend upon someone else. But some people are lazy and would rather leave that up to someone else.

I am not bad mouthing mutual funds. They're a solid tool for most people. What I am doing is warning you against relying totally on other people to take care of your financial interests.

Stock brokers only get paid to trade and sell. CPA's don't care if you get audited. They just fill out forms and charge a lot for that service.

If you're interested in a way to safely earn a 225% return on your money I can show you the details.

Answer 5

Mutual funds are an extremely good way for you to spread your risk in the stock market. Look for index funds, not managed funds. Avoid funds with front or end loads. The management fee for a fund should be less than 0.4% per year.

In addition to spreading risk, most index funds do not charge to trade in or out, so you also avoid trading fees.

Answer 6

With the decline of the US Dollar and prospective Amero (more below) you need to be careful where you invest your money.

Before investing in the stock market, or anywhere for that matter, you should go to this site and get a free copy of the ebook "Secrets to Economic Cycles". It will explain the best times to invest in different markets and the warning signs to get out, before it's too late. http://www.yourcoinbroker.com/EbookRequest.html

What will hold up in today's economy?

Gold is a great idea in today's uncertain economy (read on), but you need to understand the difference in stocks, rare coins, bullion, etc. Bars are bullion, only worth the weight of gold, whereas many pre-1933 gold coins will out perform any other gold investment out there.

Investing for Privacy, Protection and Growth

Talk to the expert and he will explain how certain coins outperformed others, even when they are all pre-1933, you need to know which ones will outperform any other gold investment. Whether you decide on bullion gold coins, gold bars, numismatic gold coins, etc., gold is the best option for privacy, protection and growth in today's uncertain economy.

Decline of the US Dollar

Gold is an excellent option, especially considering how the value of the US Dollar has declined 35% and is expected to decline another 40% in the next few years. The reason? We were taken off the gold standard. Just as the reason the Euro is doing so well? They are backed a percentage by gold.

The new proposed "Amero"

Have you heard of the Amero? That's the next biggie that will cause people to run and put all of their money in gold, not knowing how it is going to effect our economy, i.e. combining two "okay" economies with Mexico (US, CA and Mexico) and calling the new currency the Amero?

Here is a great site for so much information, and the author of the site is available 24/7 to answer any questions that you have. http://www.yourcoinbroker.com/value_of_t... You can call him any time and he will answer every question you could ever have without trying to sell you. What you do with that information is entirely up to you. Call the expert so you fully understand what you are doing before you go forward, whether you go through him or not, it doesn't matter, information here is key. Call Jim Burg Direct at [phone] or [phone].

He's the most knowledgeable in the business... no matter what your questions are with respect to any investment... that's all I have to say.

Hope this is helpful to you.

Answer 7

Yes, they won't run away with your money; however, they will rob you of the returns you deserve with their fees and general underperformance.

By robbing you of returns I'm simply stating the fact that after fees most mutual funds won't beat the S&P 500 index over long holding periods. Some will but if your asking the above question you need to also as yourself if you'll be able to select the top managers of the next 10-30 years.

Answer 8

Depends on the funds objective, risk profile and fees. No mutual fund has gone bankrupt if that is what you are asking. Generally they are safe with regards to failure because of the SIPC (Securities Investor Protection Company) coverage which covers you up to $500,000 in case of firm failure.

Answer 9

Yes.

Some Mutual Funds manage trillions of dollars and they have been in businesses for centuries.

Vanguard is the largest in the United States of America.

Answer 10

Mutual funds can be as risky or safe as you choose to be.
Safe is money market funds all the way to risky sector funds,
smallcap, emerging market agricultural funds.

You should talk to the seller to find where you fit in the risk profile