Mutual funding tips for more profit

Mutual fund industry has insisted on investor confidence by establishing a tradition of equal trade, honest accounting and overall credibility. When there were sharks on Wall Street, they did not swim in the sea of ​​the mutual fund.

This image was changed when the New York State Attorney General President announced settlement of insider trading fee of $ 40 million including hedge funds and several mutual funds in early September 2003. Further exposure welcomed the question of the recent reform of Wall Street doubt and clearly denied the fund industry.

The initial expense was centered on hedge fund Canary Capital Partners, Bank of American Nation Fund and Bank One's Bank Fund. Among the inappropriate activities being claimed, there is an obligation to "backdate" the net asset value (NAV) of the shares of customers selected at the expense of others.

NAV pricing will be done at the end of all sessions. Investors who can turn his stock back can use the closed news event that will affect NAV the next day. Purchasing a Technology Mutual Fund after a large announcement announced at 4:15 pm by Intel or Microsoft means that customers will enjoy an upward trend the following morning.

There were other Faisian abandoning the air from the swirl of the fund company's trust. Currently, New York AG is investigating Bank of America and Bank One with Strong Cant Management and Janus Capital Group, Vanguard Group, Invesco Fund. Illinois regulators are considering practicing Samaritan Asset Management Services. Massachusetts' financial regulatory authorities are causing Prudential Securities and related fund companies. The SEC sent a letter requesting information to Merrill Lynch, Goldman Sachs, Fidelity Investments.

It covers the big chunk of the mutual fund industry. If you have money in any of these companies' funds, this is not necessarily the time to relieve. But you should open your eyes and invest.

Over the years we have questioned the priorities of mutual fund managers and the overall intermediary business related to them. Our Questions: Are they entering for you, investors, or for themselves, and for the string prober of the conference room?

Last year, a member of the fund manager took off his position because he was warning the pitfalls of the industry's standard "buying and holding" strategy without putting all his cash in stock. Bear market.

We drew three lessons from the story:

First, with a few exceptions, mutual funds and the entire intermediary industry are doing their utmost to make money for the company. If customers earn money, that is fine. The acquisition strategy is the main reason why millions of investors have lost most of the retirement savings from 2000 to 2002.

Next, when investing in mutual funds, it is better to obey S & P 500, NASDAQ, DOW and use indexing tracking funds that are unlikely to be operated by management.

Finally, we set up a model portfolio to manage financial management. Monitor it closely and get in and out of the market as the trend goes out.

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