Alternative Energy Funds presents - Investor Tips For Picking Stock Funds
Here on Alternative Energy Funds we are pleased to present you with articles from our guest writers on a wide variety of alternative energy topics. We hope you enjoy this one:
By James Leitz
Informed investors who want to put their money to work to earn higher returns invest in stocks. Unless you are an experienced stock picker who really knows how to invest, your best option is to invest in stock funds. Unless you get investor tips from a real pro or pay for advice, picking stock funds to invest in is your job.
Don’t be too casual when picking stock funds. Stock (equity) funds are the primary growth engine of the average investor’s total portfolio. This is where you make the big profits, or take your largest losses. Here are some investor tips geared to those of you not quite yet up to speed on how to invest in stock funds.
Do not put much faith in investor tips that tout specific funds as the “best ” or “hot”. Some of this free advice is self-serving, and most of it misses the mark. There are thousands of equity funds out there, and nobody has a great track record at picking the best.
Do not chase performance. Last year’s big winner is sometimes next year’s big loser. A few lucky bets by a fund manager can later blow up in investors’ faces as market conditions change.
Focus on stock fund types or categories. Do not jump from fund to fund in the same category without good reason. If a fund has a poor track record vs. other similar funds, avoid it. A proven loser doesn’t often change its ways.
If you own a fund that tends to under-perform other funds in its category, dump it. Mutual fund literature will compare a fund’s performance to an index of comparable funds. Look at this literature.
If you are just learning how to invest, but realize that you should invest in stock funds for growth, get started the easy and safest way. Start with a TOTAL MARKET INDEX fund or an S&P 500 INDEX fund. These major index funds track the U.S. stock market in general. You participate in the stock market without the fear of having picked a loser fund.
Check a fund’s expense ratio, they all have one. These expenses come out of your pocket and eat away at your fund’s value. Index funds can have low expense ratios, costing you less than one-half of 1% a year to own and hold. Some stock funds charge more than 2% a year. A high expense ratio is no indication of high quality.
There are numerous types or categories of stock funds. In picking stock funds when you know little about how to invest, look first at LARGE-CAP funds that are general diversified funds called either EQUITY INCOME or GROWTH and INCOME funds. These invest in the likes of IBM, Coca Cola, Wal-Mart, and GE. They pay average dividends with average risk.
SMALL-CAP and GROWTH funds are riskier popular categories of stock funds. Consider smaller positions in these funds if you want further diversification. Your major stock holding(s) should be large-cap diversified funds, with an S&P 500 Index fund being a perfect example.
A retired financial planner, James Leitz has an MBA (finance) and 35 years of investing experience. For 20 years he advised individual investors, working directly with them helping them to reach their financial goals.
Jim is the author of a complete investor guide, Invest Informed, designed for average investors or would-be investors of all levels of financial background and experience. To learn more about investments and investing and his new financial guide go to http://www.investinformed.com
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Alternative Energy Funds presents - Investing in Alternative Energy Mutual Funds
Here on Alternative Energy Funds we are pleased to present you with articles from our guest writers on a wide variety of alternative energy topics. We hope you enjoy this one:
Investing in Alternative Energy Mutual Funds
By David Farrands
As the world’s consumption of energy increases there are many companies that are looking for new and cleaner ways to produce power. It stands to reason that these companies will be quite profitable in the near future and they are beginning to gather a lot of attention from investors.
Since many of these companies are relatively new there is no benchmark to compare then to. Picking individual companies that will be profitable in the long term is quite difficult. That is why many people are beginning to research alternative energy mutual funds. These are investments that pool the money of many people together and use it to invest in numerous companies in the alternative energy field.
Investing in alternative energy mutual funds can help you earn a profit while supporting companies that are working to provide clean forms or power, reduce pollution and lower our dependence on foreign oil. Many people include alternative, green or renewable energy mutual funds in the same categories as socially responsible investing or green investing.
When making any investment you should carefully read the prospectus to ensure that the goals of the funds manager matches you personal goals. Investing in alternative, renewable or green energy mutual funds is really no different.
Currently there are relatively few investment firms that offer alternative, green or renewable energy mutual funds, but the number is growing quickly as demand for investment grows. Many research sources are available on the internet including MarketWatch, MSN Money and Yahoo Finance. All are good starting points for finding information on alternative, green or renewable energy mutual funds.
For more information visit Green and Alternative Energy Mutual Funds and Energy Mutual Funds.
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Alternative Energy Funds presents - Investing in Funds is One of the Safest Ways to Protect Your Money
Here on Alternative Energy Funds we are pleased to present you with articles from our guest writers on a wide variety of alternative energy topics. We hope you enjoy this one:
Investing in Funds is One of the Safest Ways to Protect Your Money
By John F Brown
The Stock market and share market are ideally suited for making huge money, but the amount of risk involved in those fields is certainly high. To minimise your risk and to protect your money, consider investing in funds. Though you cannot expect huge returns like stock or shares, you can definitely find good value for your money by investing in funds. Even with a small sum of money, you can protect it using funds. By consulting a professional money manager, you can decide your investment plan. Investing in funds is also a do-it-yourself task if you know the types of funds.
Investment trusts
Investment trusts use your money along with the money of other investors to invest all the money across various shares. The best way to protect money while buying shares is to distribute the investment. When you invest in shares on your own, you have to invest at least £1000 a month to protect your investment. But, with investment trusts, you can invest £50 a month and get the same protection and benefits. Using investment trusts, you can expect your investment to grow even if the share price of companies reduces. The reduction in price of some company shares will be compensated by the increase in price of other shares. This policy allows you to invest your money across the globe in an indirect way. Your profits with investment funds depend on the fund manager you choose.
Unit trusts
By buying unit trust, you are using your money to buy units in a fund. The value of the assets held by fund managers determines the price of a unit. When investors invest more money in funds, new units are created. The size of unit trust is never restricted and it can increase and decrease according to the demand. Investors buying units will have to pay a price called as offer price and investors selling units pay a different price called as bid price. The difference between these prices is called spread and it determines your profit. As unit trusts cannot be carried worldwide, a variation of unit trusts is now widely used for investing in funds.
Investment companies with variable capital (ICVC)
Just like unit trusts, you will be buying shares instead of units for investing in funds. These are also open ended and you hold shares of the fund manager. The variable price of unit trusts creates confusion and hence, in ICVC, there is only a single price that makes everything clear. You always know the exact amount you are paying. Using ICVC, it is possible to equate British in-line funds with other country funds.
The investment trusts also function by market speculation. Sometimes, the price of the trust may be less than the value of the asset. In that case, the trusts will be sold at a discounted price. When investors find out that the price of these trusts will rise in the future, they will invest more in those trusts. For any type of investment, risks are involved because there is no guarantee that the fund manager will perform without errors. By carefully choosing your suitable investment type, you can reap benefits in the future.
John Brown recommends visiting Alternative Investors for hints and tips on investing your money.
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