Mutual Funds Tips More Profits

Mutual fund industry has the confidence to build confidence in a traditional transaction, honest accounting and overall trustworthy investor. If there is a shark on Wall Street, they do not swim in the mutual fund

The image changed in early September when the New York Attorney General announced a settlement of $ 40 million in insider trading involving hedge funds and several Mutual Funds. Further revelations have brought the impact of Wall Street's recent reforms and put the fund industry on a notable negative impact.

The initial charges revolve around a fund of hedge funds Canary Capital Partners and the Bank of America National Fund and Bank Bank. In so-called inappropriate activities, it refers to the "backtracking" of the net asset value (NAV) of a customer's stock at the expense of others.

NAV pricing should occur when closing each session. Investors who can recover their shares can take advantage of news events that will affect the NAV at the end of the day. After Intel or Microsoft released a large-scale announcement at 4:15 pm, buying a technology mutual fund would mean that customers would benefit from a possible upturn in the morning.

There are other liars, all of which are air companies out of the atmosphere of the trust. New York companies are still investigating Bank of America and Bank One, as well as strong capital management and Janus Capital Group, Pioneer Group and Invesco Fund. The Illinois regulators are studying the practice of Samaritan Asset Management Services. Financial regulators in Massachusetts are exploring Prudential Securities and related fund companies. SEC sent letters requesting information to Merrill Lynch, Goldman Sachs and Fidelity Investments

This covers a large part of the mutual fund industry. If you have a fund from one of these companies, this is not necessarily the time for salvage. But you should open your eyes to invest.

For age, we have questioned the priorities of mutual fund managers, as well as the entire brokerage business. Our question: Are they for you, investors, or pullers for themselves and the board of directors?

Last year, we ran a piece of a fund manager that did not put all the cash in the stock market and warned of the pitfalls of industry-standard "buy and hold" strategies during the bear market.

We learned three lessons from the story:

First of all, except the mutual fund and the entire brokerage industry first and foremost is making money for the company. If customers make money, it does not matter. Buy-and-hold strategies are the main reason why millions of investors lost most of their retirement savings in 2000-2002

Next, if you invest in mutual funds, it's usually best to use index tracking Funds simply follow the S & P 500, NASDAQ or DOW, and are less likely to be manipulated by management

Finally, control your financial destiny by building a model portfolio. Closely monitor it, and jump in and out of the market as the trend