THE BIG SECRET THE MUTUAL FUNDS DON?T WANT YOU TO KNOW?INDEXING!
Non-indexed mutual funds try to keep it secret that actively managed mutual very funds rarely do better stock market indexes. The higher fees of the managed funds really make it hard for these funds to out compete indexed funds. Smart financial journalists occasionally rat out fund managers for not educating the public in this regard. When this happens the mutual fund managers make a feeble attempt at self defense by pointing to something called the 5% rule. This rule says that for a fund to market itself as diversified it cannot have more than 5% of 75% of the funds total assets in a single stock.
In other words, a fund can have 25% of its holdings in a single stock, but the remaining 75% must follow the 5% rule. The 5% rule was created by the Investment Company Act Requirement. Fund managers claim that this hampers their performance instead of admitting that they are in the business just to clip you for high fees while the mutual fund under-performs the general market. The truth is that the big killer is the herd mentality of active fund managers. They follow each other around buying and selling the same junk.
They flock to the same familiar companies and often overlook the new, obscure companies that show great promise. They take great comfort in knowing that, even if their fund misses out on a great opportunity, most of the others in its group will too. They also know that they can pull their huge fees out during the whole time your retirement savings are parked in their fund. Over the years they spend a lot of marketing money to make you think that they actually care.This is certainly not the attitude I want the manager of my retirement to have! You should be asking your self why the mutual funds don't just mimic the same portfolio stock composition as a major index like the S&P 500 stock market index. Well, some have and those that are indexed out perform actively managed funds at the minimum management cost.
For this reason I strongly recommend that if you can only buy mutual funds as in the case of the 401(k) then restrict your purchases to indexed funds like the Vanguard 500 (VFINX)..
ABOUT THE AUTHOR: Dr. Scott Brown, Ph.D., the Wallet Doctor, is a successful investor. Dr. Brown holds a Ph.D. in finance. The Wallet Doctor is sought after for investment advice and coaching. For more information visit Dr. Brown?s site at www.BonanzaBase.com or sign up for his investment tips at www.WalletDoctor.comSmarsh Inc. Introduces Hedge Fund Email/IM Archiving Solution, Archive InSite?
Smarsh Inc., a privately held global provider of technology solutions for the financial services industry, announces the launch of a new version of its archiving solution designed specifically for small to mid-sized hedge funds, Archive InSite. The new solution satisfies the need for hedge fund managers to follow future hedge fund record retention requirements. A bundled package of services, Archive InSite allows compliance officers, and other authorized administrators to utilize all products in the Smarsh Inc. Web Compliance Toolkit. Administrators will now have access to Email and IM archiving, anti-spam and virus protection, encryption, and a host of other provisions which have been designed specifically for hedge fund compliance.
Financial managers now have a definite digital trail of all electronic communication, providing a fail safe and fully searchable archive which complies with new hedge fund regulations. Furthermore, Archive InSite has also been engineered to easily...
Smarsh Inc. Introduces Hedge Fund Email/IM Archiving Solution, Archive InSite?
Hedge funds > Smarsh Inc. Introduces Hedge Fund Email/IM Archiving Solution, Archive InSite?
FinLab SA and Barclay Group Join Forces
FinLab SA and The Barclay Group recently signed a Data License Agreement, allowing user's of FinLab's PackHedge? software to seamlessly retrieve data from Barclay's suite of hedge fund and managed futures databases. "Combining the PackHedge set of tools with timely and accurate hedge fund data from The Barclay Group creates a powerful solution for the growing and dynamic hedge fund sector," says Mr. Denis de Penthney O'Kelly CEO of FinLab SA.Sol Waksman, president of The Barclay Group, adds, "We're delighted to offer PackHedge subscribers direct access to our databases. We continually strive to increase the scope of our databases and improve data quality. FinLab clients can feel confident they have the best possible data for investment analysis and portfolio construction."FinLab SA provides advanced software products and services to investment professionals making asset allocation decisions on both hedge funds and traditional funds.
The Barclay Group compiles alternative investment...
FinLab SA and Barclay Group Join Forces
Hedge funds > FinLab SA and Barclay Group Join Forces
Smarsh Inc. Introduces Hedge Fund Email/IM Archiving Solution, Archive InSite?
Smarsh Inc., a privately held global provider of technology solutions for the financial services industry, announces the launch of a new version of its archiving solution designed specifically for small to mid-sized hedge funds, Archive InSite. The new solution satisfies the need for hedge fund managers to follow future hedge fund record retention requirements. A bundled package of services, Archive InSite allows compliance officers, and other authorized administrators to utilize all products in the Smarsh Inc. Web Compliance Toolkit. Administrators will now have access to Email and IM archiving, anti-spam and virus protection, encryption, and a host of other provisions which have been designed specifically for hedge fund compliance.
Financial managers now have a definite digital trail of all electronic communication, providing a fail safe and fully searchable archive which complies with new hedge fund regulations. Furthermore, Archive InSite has also been engineered to easily...
Smarsh Inc. Introduces Hedge Fund Email/IM Archiving Solution, Archive InSite?
Hedge funds > Smarsh Inc. Introduces Hedge Fund Email/IM Archiving Solution, Archive InSite?
Energy Hedge Fund Center Now Tracking 450 Energy Hedge Funds
New York, NY
(ContentDesk) December 7, 2005 -- The Energy Hedge Fund Center (EHFC), the premier information source for energy and environmental hedge funds (www.energyhedgefunds.com) today announced that it is now tracking 450 hedge funds in the energy and environmental space including 200 funds focused exclusively on various energy strategies. EHFC staff believe that the true number is still higher as there has been a general rush to the energy sector on the part of many general funds over the last 18-months. We have been finding or been contacted by an average of about fifteen hedge funds per month since we started the directory of energy hedge funds," reports EHFC co-founder, Dr. Gary M. Vasey. While many are new funds some are existing funds that have exposed more of their assets under management to the energy sector. The EHFC directory of energy hedge funds is available to subscribers...
Hedge funds > Energy Hedge Fund Center Now Tracking 450 Energy Hedge Funds
Energy Hedge Fund Center Now Tracking 330 Funds in Energy - New Trend is Emergence of Natural Resources Fund of Funds
The Energy Hedge Fund Center (EHFC) reports that it now lists more than 330 hedge funds active in the energy and energy-related industries with two to three new funds in formation each week. The Energy Hedge Fund Directory lists hedge funds that are either specialist energy funds or more diversified funds that have exposed more of their assets under management to the energy industry. The directory is actively maintained by EHFC staff and subscribers receive monthly updates.Currently, EHFC has identified more than 100 hedge funds active in energy commodities markets and more than 70 that are pursuing energy focused equity long/short strategies. Additionally, the directory now lists a growing number of alternative energy and environmental or ?green' hedge funds. About 90 of the listed hedge funds have a 100% focus on the energy industry while many more are active across commodities including electric power, natural gas, refined products, crude oil, metals and agricultural commodities....
Energy Hedge Fund Center Now Tracking 330 Funds in Energy - New Trend is Emergence of Natural Resources Fund of Funds
Hedge funds > Energy Hedge Fund Center Now Tracking 330 Funds in Energy - New Trend is Emergence of Natural Resources Fund of Funds
The Hedge Fund Headache
The Hedge Fund HeadacheByHedge Funds are dangerous. They play with the D-bomb and Hedge Fund managersdon't know what they are doing. They are like children playing with alandmine in a sandbox. It's fun and exciting until the darn thing goes off.A D-bomb explosion would have the same impact on the global financialmarket, as an H-bomb would have denoted over Salt Lake City. The resultwould be a multi-century wasteland after the explosion.
A D-bomb explosionmeans that our Civilization will be facing a new multi-century Dark Age.The D-bomb is the Derivatives Market. In theory, derivatives are balancedrisk investments that allow Hedge Funds, banks, insurance companies andothers to profit from the spread created by the bet. The three designproblems with D-bombs are that the risk is usually an either or option thatdoesn't factor in a third alternative. Many bundled derivatives havecomponents that don't represent outside financial instruments that mighthave value after a D-bomb explosion....
The Hedge Fund Headache
Hedge funds > The Hedge Fund Headache
Are You Responsible For The Appliances in Your New Apartment?
So you're moving into a new apartment? The list of things you should check on before signing that lease seems never-ending. You have to worry about location, environment, convenience, cost, aesthetic appeal, etc. But wait... there's more! One more thing to check out is what you, the tenant, are responsible for bringing to the apartment.Realize that just because the model apartment you toured with your landlord displayed the lovely washer/dryer 2000 unit doesn't mean you'll have one in your apartment....
Are You Responsible For The Appliances in Your New Apartment?
Hedge funds > Are You Responsible For The Appliances in Your New Apartment?
financial planning THE BIG SECRET THE MUTUAL FUNDS DON?T WANT YOU TO KNOW?INDEXING!
THE BIG SECRET THE MUTUAL FUNDS DON?T WANT YOU TO KNOW?INDEXING! Hedge funds ira
THE BIG SECRET THE MUTUAL FUNDS DON?T WANT YOU TO KNOW?INDEXING! Hedge funds potty training