FYInance

Posts Tagged ‘Mutual Funds’

Dr. Terry F Allen talks about how investing in a leveraged stock options portfolio is safer and gives an investor better odds at making profits than “traditional” stock purchasing and mutual funds.

Recently I have been asked about what global funds are. Some people confuse global funds with international funds. There are differences between global funds and international funds as well as other types of mutual funds such as regional funds.

Definition of global funds

Global funds are sometimes called world funds. Unlike international funds, global funds include US stocks or bonds in their portfolios as well as stocks or bonds from other countries.

Different global funds have different proportions of what stocks or bonds are US stocks or bonds. Different global funds are also heavy on stocks or bonds of different countries depending on what the mutual fund manager sees opportunities and good investments that are in line with the mutual fund’s objective.

You can read more about mutual fund here at http://www.mutual-fund-research.info or for advanced mutual fund investors http://www.morningstar.com. There are thousands of good looking mutual funds. It is important to do your research carefully to see which mutual funds or global funds are suitable for your goals.

Lots of bond talks these days so we decide to discuss something different today. We are going to generally discuss where to invest your money. There are many types of investments. But, in order to invest, you have to have some money that you don’t need first. This is very blunt but if you are starving, of course, you need to spend the money on food first. If you need a home, then of course the money should go towards getting a mortgage or a place to stay first. After all the immediate needs have been taken care of, then you can use the rest of the money (less some emergency cash) to invest.

Before we talk more about what types of investments you should invest in, we asked our readers about what they would do with their money and what they want to invest in. So, let’s throw in the $50,000 cash question to our readers. One reader responded as follows.

What would you do with $50,000 if you had it today?

“If I had $50,000, I would first payoff all of my outstanding credit cards and other bills, purchase two tanks of home heating oil for this coming winter, use some to take a much needed vacation, and then invest the rest of the money. Investing in the stock market is risky so I probably would put the remainder of the money either in a mutual fund or a bond.”

This is a perfect answer. Our reader will first take care of his immediate needs which is to pay off some bills (obviously important to him), make sure his house is warm for the winter. Then when he has some money left over, he would invest. You need to live your life as well and you cannot just spend every last cent you have towards an investment. He also has some knowledge of investment vehicles and yes stocks are riskier than bonds usually. So, investing in bonds or mutual funds would be a good way to start his investments. But, he must make sure that he will not need the money he is investing because most of the time bonds and mutual funds are long term investments. But, he will learn all about that later on from our blog posts. Thank you for sharing everyone. If you want to read more about how to invest your money the smart way, you can check out these resources, http://moneycentral.msn.com and http://www.investingsmart.info.