Finance | Forex, Stocks and Mutual Funds » Personal

Personal Finance and Money Management 18-Understand Fee of Mutual Funds

gutenk — Tue, 29 Nov 2011 17:29:40 +0000

Personal Finance and Money Management 18-Understand Fee of Mutual Funds

Article by Kyle Norton

1. Acquisition feeIf fees are imposed at the time mutual fund shares are purchased, it is called an acquisition fee or front-end loading charge. It used to be 1- 5% of the amount purchase. Investors can always negotiate for a lower fee with their financial adviser.

2. Redemption feeFees are paid at the time when money is withdrawn from the mutual fund. Redemption fees represent a percentage of either the amount of the initial investment or the current market value of the holding, usually 5% and decreases over time depending on the years of money remaining in the mutual fund purchased. Usually after 7 years, the money withdrawn carries 0% redemption fee.

3. No load fundNo load funds do not charge sales fees. Most no load funds do not have sales forced. It usually finds investors through advertising, direct mail, and still charging a management fee and probably a trailer fee arrangements with stockbrokers.

4. Managing feea) Management fees are represented as a significant cost for both closed-end and mutual funds, usually range from 0.5% to 2.5% being deducted directly from the assets of the fund before calculating return to investors. Some specialty have managing fees over 3%.b) A good way of comparing the management fees of various funds is the management expense ratio also known as MER. MER, expressed as a percentage is an annual ratio of all fees and expenses to the average net assets of the fund excluding sales fees.c) All fund companies pay their agents annual commissions, known as trailer fees.

Unlike no load funds, most acquisition and redemption fee funds are sold through financial advisers or insurance agents who also have mutual fund licenses. They are experts in their field. It is nice to have someone to talk to after initial purchasing.Before deciding to invest in mutual funds, it is necessary to look at the 10 years return graph of each fund, the fund manger and expense ratio. Please do not assume all of these types of funds are the same, some equity funds always return below the same equity index while others have beating the same index year over year.

I hope this information will help. If you need more information, you can read the complete series of the above subject at my home page:

http://lifeanddisabitityinsuranceunderwriter.blogspot.com/http://financialinvesting09.blogspot.com/

About the Author

All rights reserved. Any reproducing of this article must have all the links intact.”Let You Be with Your Health, Let Your Health Be with You” Kyle J. NortonI have been studying natural remedies for disease prevention for over 20 years and working as a financial consultant since 1990. Master degree in Mathematics, teaching and tutoring math at colleges and universities before joining insurance industries.

Guide to Buying Mutual Funds Dynamic Wealth Management Zurich Guide to Buying Mutual Funds Dynamic Wealth Management Zurich Article...
How to Invest in Mutual Funds How to Invest in Mutual Funds Article by Louis Zhang...
Mutual Fund Management and Estate Planning Education Mutual Fund Management and Estate Planning Education Article by Cory...

Related posts brought to you by Yet Another Related Posts Plugin.

Money Management & Personal Finance : What Determines the Foreign Exchange Rate?

gutenk — Fri, 07 Jan 2011 17:31:51 +0000

To determine the foreign exchange rate for different currencies, check the local paper for exchange rates, and pay attention to the inflation rate. Avoid exchanging money with countries that spend more money than they bring in with advice from a financial consultant in this free video on currency exchange. Expert: Roger Groh Bio: Roger Groh is the founder of Groh Asset Management. Filmmaker: Bing Hu
Video Rating: 5 / 5

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

Personal Financial Planning Tips : How to Select a Good Mutual Fund

gutenk — Fri, 02 Apr 2010 06:55:54 +0000

Selecting a good mutual fund is tricky, but as long as the fund has at least a five-year track record, that is an ideal history time line. Choose a well-performing mutual fund with a long-term performance record with advice from a financial planner in free personal-finance video. Expert: Julie Asti, CFP Bio: Julie Asti works as a financial planner for Asti Financial. Filmmaker: Bing Hu

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

Personal Financial Planning Tips : How to Invest in Tax-free Mutual Funds

gutenk — Tue, 09 Feb 2010 06:58:30 +0000

When investing in a tax-free mutual fund, be sure to take a look at the taxes and how they’re handled as not all mutual funds are free from taxes at federal, state and local levels. Find out which mutual funds are truly tax-free, like a bond mutual fund, with tips from a financial planner in free personal-finance video. Expert: Julie Asti, CFP Bio: Julie Asti works as a financial planner for Asti Financial. Filmmaker: Bing Hu

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

Personal Finance & Investing : How to Buy & Sell Mutual Funds

gutenk — Mon, 08 Feb 2010 07:56:38 +0000

Buying and selling mutual funds requires researching each fund and assessing the level of risk one is willing to take when investing money. Discover more about investing in mutual funds, and how age should play a factor in how aggressive an investor should be, with advice from a futures and options floor trader in this free video on personal finance. Expert: Mark Griffith Bio: Mark Griffith has graduated in economics and philosophy at Clare College, Cambridge. He has been a futures and options floor trader at LIFFE (London International Financial Futures Exchange). Filmmaker: Paul Volniansky

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

Personal Finance and Money Management 39- Major Types of Registered Retirement Income Fund

gutenk — Mon, 25 Jan 2010 06:55:42 +0000

Remember that the government only represents about 30% of our retirement income, the company retirement pension plan offers another 30 % and many of us do not have one. It is up to individuals to invest wisely short and long term in order to make up for the short fall if he or she would like to live comfortably after retirement without giving up some retirement plans. As you reach your retirement year and decide to convert your RRSP in RRIF. In this article, we will discuss major types of RRIF. There are 4 types of RRIF1. Saving accountSaving account is most conservative investment. It is guaranteed up to $100,000 by Canadian deposit insurance corporation (CDIC) and pay very little interest. 2. Guaranteed investment certificate (GIC)a)Under GIC you investments in your RRIF account are lock in a short period of time. b) Interest is little better than the saving account. c) Investments are guaranteed up to $100,000 by CDIC. d)Interest return although better than saving account. It is vulnerable to inflation and changes in interest rates. 3. Mutual fundBecause of lower of interest rate environment, mutual fund become major attraction to RRSP holder. There are more people convert their RRSP to RRIF than 3 other types combined. The advantage of mutual mutual RRIF containsa) Many options to choose from. b) Mutual fund are managed by professional manager. c) RRIF management/administrative expenses are paid from within the RRIF plan. Paying fees from outside the RRIF could lead to de-registration with taxable consequence. d) More growth potential than saving account and GICs. e) Diversification with many fund and sectors in your RRIF account. Remember, your money invested in mutual fund is not guaranteed4. Self direct RRIF accounta) You create the strategy of investment in your own. b) Depend on your risk, you may invest all your money in equity, such as technology stock or blue chip stock. etc. Potential growth is high,as well as risk. c) Fee of self direct RRIF account are deducted from your account. I hope this information will help. If you need more information, you can read the complete series of the above subject at my home page:http://lifeanddisabitityinsuranceunderwriter. blogspot. com/http://personalfinance39. blogspot. com/

All rights reserved. Any reproducing of this article must have the author name and all the links intact.

“Let Take Care Your Health, Your Health Will Take Care You” Kyle J. Norton

I have been studying natural remedies for disease prevention for over 20 years and working as a financial consultant since 1990. Master degree in Mathematics, teaching and tutoring math at colleges and universities before joining insurance industries.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

Personal Finance and Money Management 17-types of Mutual Funds

gutenk — Tue, 25 Aug 2009 13:44:54 +0000

As we mentioned in previous articles we know that our government only represents about 30% of our retirement income. The company retirement pension plan offers another 30 % and many of us do not have one. It is up to individuals to invest wisely short and long term in order to make up for the short fall if he or she would like to live comfortably after retirement without giving up some retirement plans. In this article, we will discuss types of mutual fund. Mutual fund is a pool of investor’s money and is sold as a unit. It is an open end fund and managed by professionals. It also must meet certain regulations of the security commissions and laws governed before it can be sold to the general public. There are 4 types of mutual funds depending to the fund objectives:1. Balance funda) Their purpose is to maximize a balance of capital appreciation and income, yet preserve capital. b) It contains a combination of debt and equity securities. The proportions of bond and security are adjusted according to economic conditions. 2. Equity funda) Dividend fundi) Invested in dividend-paying stocks. ii) Maximize income by specializing in stocks paying high dividends. iii) Allows investors to take advantage of the dividend tax credit, but they don’t give many capital gains dividends. b) Growth fundInvested in common stocks for capital appreciation. There are 3 types of equity growth fundi) Broad spectrum funds: invested in any company with growth potential. ii) Market segment funds: invested in a specific sector of the market, such as oil and gas, precious metals, commodity, or high technology. iii) International funds: invested in specific countries such as China, Japan, Russia, and European countries. 3. Specialty fundSpecialty funds have the below characteristics:These types of fund investments are strictly in specific commodities, such as gold funds only allowed to invest in gold bullion or gold certificates, real estate funds only allowed to invest in property, Oil and gas only allowed to invest in oil and gas producing companies, as indicated in the fund prospectus. I hope this information will help. If you need more information, you can read the complete series of the above subject at my home page:http://lifeanddisabitityinsuranceunderwriter. blogspot. com/http://financialinvesting09. blogspot. com/

All rights reserved. Any reproducing of this article must have all the links intact.

“Let Take Care Your Health, Your Health Will Take Care You” Kyle J. Norton

I have been studying natural remedies for disease prevention for over 20 years and working as a financial consultant since 1990. Master degree in Mathematics, teaching and tutoring math at colleges and universities before joining insurance industries.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

Personal Finance and Money Management 18-understand Fee of Mutual Funds

gutenk — Sat, 08 Aug 2009 22:56:53 +0000

As we mentioned in previous articles we know that our government only represents about 30% of our retirement income. The company retirement pension plan offers another 30 % and many of us do not have one. It is up to individuals to invest wisely short and long term in order to make up for the short fall if he or she would like to live comfortably after retirement without giving up some retirement plans. Mutual fund is a pool of investor’s money and is sold as a unit. It is an open end fund and is managed by professionals. It also must meet certain regulations of the security commissions and laws governed before it can be sold to general public. In this article we will discuss mutual fund fees. 1. Acquisition feeIf fees are imposed at the time mutual fund shares are purchased, it is called an acquisition fee or front-end loading charge. It used to be 1- 5% of the amount purchase. Investors can always negotiate for a lower fee with their financial adviser. 2. Redemption feeFees are paid at the time when money is withdrawn from the mutual fund. Redemption fees represent a percentage of either the amount of the initial investment or the current market value of the holding, usually 5% and decreases over time depending on the years of money remaining in the mutual fund purchased. Usually after 7 years, the money withdrawn carries 0% redemption fee. 3. No load fundNo load funds do not charge sales fees. Most no load funds do not have sales forced. It usually finds investors through advertising, direct mail, and still charging a management fee and probably a trailer fee arrangements with stockbrokers. 4. Managing feea) Management fees are represented as a significant cost for both closed-end and mutual funds, usually range from 0. 5% to 2. 5% being deducted directly from the assets of the fund before calculating return to investors. Some specialty have managing fees over 3%. b) A good way of comparing the management fees of various funds is the management expense ratio also known as MER. MER, expressed as a percentage is an annual ratio of all fees and expenses to the average net assets of the fund excluding sales fees. c) All fund companies pay their agents annual commissions, known as trailer fees. Unlike no load funds, most acquisition and redemption fee funds are sold through financial advisers or insurance agents who also have mutual fund licenses. They are experts in their field. It is nice to have someone to talk to after initial purchasing. Before deciding to invest in mutual funds, it is necessary to look at the 10 years return graph of each fund, the fund manger and expense ratio. Please do not assume all of these types of funds are the same, some equity funds always return below the same equity index while others have beating the same index year over year. I hope this information will help. If you need more information, you can read the complete series of the above subject at my home page:http://lifeanddisabitityinsuranceunderwriter. blogspot. com/http://financialinvesting09. blogspot. com/

All rights reserved. Any reproducing of this article must have all the links intact.

“Let You Be with Your Health, Let Your Health Be with You” Kyle J. Norton

I have been studying natural remedies for disease prevention for over 20 years and working as a financial consultant since 1990. Master degree in Mathematics, teaching and tutoring math at colleges and universities before joining insurance industries.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.