Low Expense Ratio
One of the big advertising kicks today from mutual funds is to tell how low their expense ratio is and that you will make a great deal more money if you buy and hold with them. Partly true, but that is not the whole story. What is the expense ratio? It is all their overhead including but not limited to all the managers and other employees salaries, rent, computers, utilities, travel (the fund manager says he has to visit a company in Florida in the winter to see how it is doing), advisory services, telephone, etc., etc, etc. Oops, and don’t forget the manager’s bonus whether he makes money for you or not. If the fund has one billion (yes, that’s a B) that means they can spend $10,000,000 on expenses and no one will complain because it is a tiny 1%. At some point expenses just about stop going up as you don’t need very many more people to manage the paper work for a billion than you do for 250 million. The fund manager’s duties remain the same just the size of the orders he places changes. Actually as a fund grows in size its expenses should automatically come down as a percent of assets, but you will find that is not the case for many funds. They keep sticking it to their investors who don’t have any idea how egregious this is. The larger the fund family the lower should be their expenses per fund as they can outsource from the fund to a central billing and customer service desk. Vanguard Funds has more than 100 individual funds in its family and they brag on how low is their expense ratio. It should be as they have more than 720 Billion spread out over those funds. They keep their expenses low and at only 1/2% they can charge about 360 million to offset their overhead. Many funds run very high expenses. This is especially true for new and smaller funds, but as they take in more money they can spread their expenses and lower their ratios. One of the recent criticisms of funds is they have been making extra charges labeled 12B-1 that are supposed to be expressly for promotion to bring in new customers. Unfortunately, some (not all) of the fund managers have been pocketing this. If this does bring in new money then the expense ratio should fall and again in many cases it has not. Investors expect fund managers to be honest. When large sums of money are at stake it seems to bring out the worst. That real nice fund manager turns into a hungry wolf and the investor becomes one of the 3 little pigs that did not escape. Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know. Copyright 2005 |
Other Online Trading Articles
E-Currency Exchange: 4 Great Income Streams and Counting This article provides a brief overview of the 4 sources of income we can take advantage of as a participant in the e-currency exchange trading system.Specifically, I am refering to the e-currency exchange program through DXinOne. DXinOne is by far the leader in facilitating e-currency conversions. The fees charged to account for these tra ...5 Useful Tips For Your Success In Forex Trading 1. Implement a trading plan.A trading plan is especially crucial in Forex trading to stay ‘in-control’ against the emotional stress in speculative situation. Often, your emotions will blind and lead you to the negative sides: greed causes you to over-ride on a win while fear causes you to cut short in your profits. Hence, a well organized ...Businesses not on the Internet Fall Behind! Even though an increasing number of small businesses have a presence online only a small percentage of these sell online. There is a perception that trading online is expensive to set up and troublesome to maintain. This is driving many businesses to loose out on increased revenues and the trading opportunities that the internet brings. ...Builders' Bonds Tumble US home builders' bonds have become the biggest losers in the market for debt, with ratings below investment grade.The debt sold by D.R. Horton Inc., KB Home and other construction companies has fallen an average 3% since May, leaving investors with losses around 1.1% for the year, including reinvested interest.It equals the worst ...Earn Thousands Hourly (with a Forex Simulator) Test-driving an online forex demo account is the preferred method of potential traders to minimize risk. A demo account readily allows a cautious person to go online and observe exactly how a paid account would work. Think of it like playing the popular wargame Command and Conquer: you send in the troops (gobs of fictitious money), make a few ...The Right Mindset Adopt It and Make Huge Profits Now! One trader who had the right mindset was W D Gann and he built a $50 million dollar fortune.What actually do we mean by the right mindset? Well let’s consider a startling fact first:Fact: 90% of traders lose because they cannot control their emotions. Getting the right mindset is essential and will help you make big profits ...Forex Online Currency Trading FOREX is an international online currency exchange that was established in 1971. It is now the premier foreign currency exchange market in the world, with an average daily trading volume reaching as high as one and a half trillion. Three types of traders make use of FOREX-banks, individuals, and corporations. When they have need to exchange c ...Futures Trading Online Analysis All sites that offer futures trading services also have extensive analysis available for market players as well. These services are offered along with the downloadable trading platforms available to subscribers to the site.Analysis of futures gives information to hedgers and speculators regarding the world markets. Analysis is synthesized ...Business Owner Are You Losing Out By Trading In Online Auctions If you are a Small Business or Home business selling your products on an auction site (or plan to do so), do you realize that you do not own a real business?More specifically, Ebay, Trademe or whatever auction site, are really the ones that own your business. The lifeblood of your business are your customers and your ...Trading For A Living How many times have you said to yourself, “I’d like to quit this job and just make a living trading in the stock market”? Well, maybe you can, BUT...There a few things to consider.First, you have to have enough money to generate the income you need for your daily expenses and that amount is going to vary considerably depending upon ...Effective Forex Trading for Beginners Foreign exchange trading is gradually becoming an activity for men and women seeking financial freedom without the hassles of a conventional job or the headache and disappointment that comes with Internet marketing. The most appealing part of this business is the financial freedom it promises with very minimal effort, once the initial efforts i ...Discover Forex Daytrading A day trader is any trader who makes several trades per day, buying, selling, entering and closing out a trade in the same day. Forex daytrading is the same thing, only instead of trading stocks, forex traders buy and sell currencies.Forex day trading is usually referred to as simply forex trading, but all day traders, whether they trade ...What is the Foreign Exchange Market Introduction Foreign exchange, Forex or FX as it is know is the Planet’s oldest and largest financial market. It is the place where one country’s currency is exchanged for that of another. On average $2 Trillion exchanges hands every day in the form of currency transactions. This volume makes equity markets look minuscule by compariso ...Global Forex Trading – The Easy Way to Make Money Global forex trading was founded in 1997 and is today one of the world’s leading providers when it comes to forex real time trading. Global forex trading offer you the chance to deal in real time online currency trading that is making millions of forex brokers rich each day.Global forex trading serves over 100 countries, using its DealBr ...Trading Stocks -Never Forget About A Past Trade We all know that emotions control every decision that an investor makes in any type of money related vehicle. Whether is be the stock market, real estate, art work or antiques, emotions ultimately set the final price on both sides of the transaction. Some investors have greater control over their emotions while other investors are destroyed by ...Using the Internet to Optimize Investments Whether you're an investor or you've simply been thinking of making some investments, you may find that the internet is a wonderful tool that can be used to help you get the most out of your money.A variety of online tools can help you to buy, sell, and monitor your stocks and bonds, all the while letting you keep track of trends within v ...Placing Stock Sell Stops If you follow my articles or my stock analysis, you already know that I am not a supporter of physical sell stops due to the fact that market makers can manipulate these stops during the day. A market maker can drive the price down artificially during trading hours setting off physical stop after physical stop only to allow the stock to rebound ...The Top Four Forex Brokers This article contends that the best forex brokers are: Saxo Bank, GAIN Capital, GCI Financial Ltd., and CMS Forex. CMS Forex accepts no commission, demands a small amount of only $200 to establish a mini account, provides users with a Free Demo account, provides leverage as high as 400:1, and has a 3 to 4 pip spread on major currencies.S ...Forex Trading Systems Forex stands for a foreign exchange (market) where dollars, Euros, and yen, the main currencies of countries like the USA, Japan, and the members of the European Union, are traded daily. Simply stated, these currencies are bought and sold. The purchase value of these currencies, in comparison with each other, keeps fluctuating on a daily basis d ...Who Knows? The Shadow knows. Remember him? It seems a shadow has a firm grip on this stock market. Since the terrible break in mid-April we had a rally and then a decline. Trying to choose a suitable stock or mutual fund has been like grasping at shadows.Two great Wall Street gurus, Elaine Garzarelli who manages multimillions of investors' dollars a ...E-currency Trading - An Alternative to Futures & Forex Trading I find it amazing that nearly everyday I receive something online or offline that is the greatest break-through in Trading. You know the stuff. This ‘system´ or that ‘method´ has been thoroughly tested and back-tested in every conceivable fashion and is wildly successful. Some work for a period of time but most do not. The decades old statistica ...Finding Online Financial Advice As much time as people spend looking for financial advice, it's amazing that more people don't take advantage of the financial knowledge that can be found online. Everything from stock investment and diversification tips to ways that you can get the most out of your chequeing and savings accounts can be found if you know where to look.Tho ...Hedge Trading On The Forex Currency Market Trading on the forex currency market can be a volatile yet exciting form of investment and certainly has the potential of bringing vast rewards if done so properly.However it should be accepted that forex currency trading could also be a very risky investment as the market can swing both in an upward and downward movement in a split secon ...Forex Training: What to Look for in a Forex Training Program Should new Forex traders take Forex trading courses or join a Forex training program? Definitely yes; by now you have probably heard that only 5% of traders achieve consistent profitable results when trading the Forex market. The main reason for this is the lack of education. Don’t get me wrong here, taking a Forex training program or a Forex tr ...My Neighbor Got A New Car I don’t know what kind it is, but I saw it on TV running full speed along the shore (I don’t live near the shore) throwing up spray or maybe it was that one climbing up the steep mountain trail thru the mud, rocks and snow. Very exciting. (I don’t live near the mountains either.) WOW! Just what I need.But there are a few obstacles. ...Learn E-Currency Exchange To Make Money: Is this a Scam? Should you attempt to learn e currency exchange trading if the system a is just scam? Is what many courses like Matt Gagnon's mazu are promoting a scam? If not, why are there rumors of e currency exchange being a scam?If you have asked yourself questions along these lines then I highly recommend you keep reading my review for whether you ...Can you buy Shares of Verizon Now? Approximately one week away from Verizon’s (VZ) third quarter results, many investors are speculating whether to purchase shares of this lucrative telecommunications giant. In search for answers by examining earnings from other powerful monsters, there is a mix bag in terms of what to expect for both Verizon and the telecommunication industry in ...Forex Trading Software Dynamic is the most suitable word to describe the forex market. Software that deals with forex trading should also stand up to the level of quality it demands.In the market there are two types of Forex trading software available: ‘Web-based software’ and ‘desktop software’. Choosing one of them depends primarily on security and also on yo ...Greed - The Ugly Duckling of Investing Greed - The Ugly Duckling of InvestingAh, yes, that evil five letter word can get one into a some hot water when it comes to investing in the stock market now can’t it? I’m sure we’ve all been there, at one time or another, where the evil has overcome and we think; hold on for a just a little bit longer and I can make even more money tha ...To Day Trade Not To Day Trade - That Is The Question If you look at some websites around the net you’d think that day trading was some kind of disease or something. So much bad press surrounds it that you would thing that anyone who tries it must be nuts! So what exactly is day trading anyway?That’s easy. Day trading is simply entering a trade on or after the opening of the day’s trading se ...Why In The World Would I Want To Trade Stocks? That’s an excellent question. The quick answer is to make money but if we dig a little deeper we will see that the stock trader doesn’t just want to make money, he wants to make a lot of money. In fact, the stock trader is looking for larger returns that he would otherwise get by simply investing in a stock or a mutual fund.It is true, ho ...Invest, Be Wrong, and Make Money in the Stock Market I have been trading for several decades and was an exchange member and floor trader for 17 years. You learn fast there or you go broke in a hurry. As you can see I managed to hold my own for a few years until I found the secret and started to become a successful trader. Every professional trader I know knows the one great secret and that is to k ...Carbon Trading - What’s All That About? Firms are set quotas on how much carbon dioxide they can produce per year, if they produce more than this allowance, then they buy an allowance from another firm that has not reached it’s quota on how much it can produce in one year! Get it?Emissions Trading is particularly suited to the emissions of greenhouse gases, the gases responsib ...Japanese Candlestick Charts When asked to time about the advantage of japanese, I stated that I they definitely had a positive impact on my account. Candlesticks make trading a lot easier for me. To draw a comparison, I would say that plain bar charts are to candlesticks, as radio is to color television. They are a movie playing out in front of you, the key is learning to ...
|
