• The three best mutual funds you should invest in

    A bundled investment product made up of other incest products like bonds and stocks are known as mutual funds. Buying shares in the form of individual stocks and bonds are not as good as buying shares in mutual funds. In mutual funds, the investment in stock is diversified more easily. Below are the three best mutual funds:

    T. Rowe Price Instl Large Cap Core Gr Fd
    The investment seeks to provide long-term capital growth by investing in common stocks of large-cap growth companies. A growth-oriented approach is followed while selecting stocks and normally, the investment in stock is divided between 100 to 130 companies. The fund normally is known to invest at least 80 % of its net assets in large-cap companies. The fund has provided good returns in the past year, and overall has provided 12.97% over the past decade. The fees of this fund are below average compared to other funds of this category. Whereas, the fund is a high-risk fund compared to other funds of the category.

    Fidelity Blue Chip Growth Fund
    The Fidelity Blue Chip Growth Fund is expected to grow at an above-average pace and is the fund that invests in large-cap U.S. stocks. The fund offers good long-term profit with volatility. Majority of the fund is mostly allocated to technology. Around 39% of the source of the fund has an elevated risk profile. On March 27, 2018, the asset was allocated to the fund amounts to $24.70 billion in 463 different holdings. A core large-cap holding is served by the fund. The Fidelity Blue Chip Growth Fund has an expense ratio of 0.69%. Any investment in stocks can have both market and individual security risk. There is no guarantee that the fund strategy will pan out or that the shareholders will not lose the money that has been invested.

    Harbor Capital Appreciation Fund
    The Harbor Capital Appreciation Fund is focused on the blue chips as well. The fund’s asset allocation is almost $30.74 billion, which is invested in 54 different holdings. The fund’s major portfolio consists of primary shares of large companies. Apple and Amazon are usually the part of the fund’s portfolio. The fund also has interests in blue-chip companies that have a strong brand-name appeal. One will also find other big names like Google, IBM, Nike, Target, and such popular brands. The companies aim to invest their funds in stocks that have characteristics like superior sales, improving sales momentum, high levels of unit growth, improving profitability, strong balance, superior absolute and relative earnings growth. The fund has an expense ratio of 0.65%. Like most funds, this fund also has its own risks.

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  • Five tips to invest in mutual funds

    When it comes to investing in mutual funds, it is always smart to learn the fundamentals of choosing the best funds and focusing on building the portfolio for a long term. From starting the financial process, the selection and analyzing the portfolio, and taxation is needed to be known before investing. Below are five useful tips for investment in mutual funds:

    Investment based on goals
    To understand the objectives of the mutual funds, one must read all the scheme related documents. The objectives should align with the goals of investment. Also, the historical performance and the time horizon must be considered. Ensure that the scheme you invest in is a scheme that is likely to offer the best return in the specified time you aim for. Usually, equity mutual funds can be used for attaining the goals that are within 5 years.

    Diversify your investments
    In the longer run, small investments that are regular have proven to show better returns. One can invest in a Systematic Investment Plan (SIP), which enables one to invest monthly into mutual funds. This monthly investment plan helps in averaging the cost. One can also add more amount if one wants to surplus the investment.

    Risk tolerance
    One needs to know how much amount they can afford to risk before choosing the funds. Risk tolerance is based on the fluctuations (ups and downs) and the market risk one can handle. People who can tolerate risk should prefer high risk – high return funds. Whereas, the ones who can not handle extreme market fluctuations should go for low-risk investments that have low returns as well.

    Determine the asset allocation
    Risk tolerance helps to determine how the assets are needed to be allocated. Usually, a portfolio is a mix of investment assets that are stocks, cash, and bonds. A proper asset allocation ensures that one’s portfolio consists of funds that align with the risk tolerance and ensures that the investment is based on the financial goals of the person.

    Know the basic types and categories of mutual funds
    Mutual funds are organized into categories by asset classes that are stocks, bonds, and cash. They can be further categorized by objective, strategy, and style. Know how mutual funds are categorized as it will help one to choose the best funds for asset allocation as well as to diversify the investments. Like mutual funds, there are stock mutual funds, bond mutual funds, and money market mutual funds.

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  • New to the stock market, here are a few tips to get you started

    When you are new to the stock market, all those numbers and percentages fluctuating might seem like some morse code that only a few gifted ones can decode. This is not the case however since even the average joe can make use of online tools and best online trading platforms available at his or her disposal to invest and make a decent profit in the stock market.

    Of course while venturing into unchartered territories, it is imperative to understand the basics. The stock market can be pretty unpredictable and volatile at times which is why investing smartly is the only way to go. There are simply too many variables to be taken into account otherwise, which is why these helpful tips will guide you through the maze of stocks and commodities trading.

    Buying and selling: A simple logic to follow, buy stock when they are in their lows and sell when they hit your expected mark, to make a profit. Prices keep fluctuating which is why a significant amount of your time will be spent on finding out the best time to “call” on a particular share and when to “put” to cash in. Best online trading platforms will offer various features enabling you to do the same.

    No sure thing: There is nothing in the stock market which can be termed as a sure thing. The sooner you get used to this fact, the better will be your chances of surviving the highs and lows while taking a chance!

    Long-term investments: Long-term investments prove to be beneficial. Short term investing might yield you the desired return on investment, but by the time you pay taxes on your earnings on every single transaction, there might not be much left to party around with. Long-term investments will be a better option regarding profitability and stability.

    Dividends: You will earn a dividend on your investments from time to time which is a good thing. Bonus issue of shares will be a golden opportunity to cash in on your investment, but till then, dividends are a good bonus in itself. It is a good idea to own stock of any company who pay part of their profits from time to time. Best online trading platforms boast analytical tools and resources which can be used to find out the best investment opportunities.

    Types of stock: Just because a stock is priced at $500/share doesn’t make it expensive to own. Similarly, a stock which is priced at $10/share doesn’t make it a cheap stock. Investing by the price of a single share is not a good idea. Investment should be made keeping in mind what are the possible returns from a particular stock by taking into account the overall performance of that share regardless of its price.

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  • What should you know about online stock trading and platforms

    Online trading is possible with an online brokerage account to handle your options. But even after technological advances, hiring the right broker or brokerage firm for that matter will make all the difference when it comes to making a decent profit and returns on your investment. Buying and selling of stocks online is no child’s play.

    The stock market can be highly volatile with unpredictable conditions, difficult to handle even by some of the best players in the market. Being sensible and investing cautiously is just one part of the spectrum. You have to understand the online trading platform in depth to ensure a good return on any of your investments, be it short term or long term.

    Here are a few must-know facts about the best online trading platforms, what they offer, how is it suited for your purpose and most importantly, how profitable are the returns.

    Research about the best online trading platforms: The right facts and relevant data are two of the most important factors that will influence your investments. More importantly, the provider of these facts and data should be someone who has in-depth knowledge of how the stock market functions and more importantly how your selected stock will perform at the end of the day. Make use of best online trading platforms that offer exceptional analytical and research tools with real-time data analysis.

    How much will you pay in commission: For services rendered, stockbrokers and best online trading platforms will charge a commission on your profits earned. This will again depend on the size and credibility of the company. This being said, best online trading platforms might levy hefty commissions on every transaction of your which is why it is a good idea to compare platforms.

    Hidden charges and costs: Commission aside, ensure and find out beforehand what other charges can be or might be levied by best online trading platforms on the transactions. Read the fine print of the contract to find out exactly how much you will end up spending and whether the projected return on investment is worth the expenditure.

    User interface: The user interface of best online trading platforms should be such that you can transact with ease without having to rely on customer support for every little detail. Navigation is key, you should be able to switch between tasks to keep track of your investments across multiple markets. Also, find out if the software requires any additional support systems for compatibility in terms of hardware or software.

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  • 4 things you should know about silver bullions

    Silver bullion consists of coins, bars, ingots and rounds that are made silver. However, silver bullion most commonly refers to silver coins. Investing in bullion, whether gold or silver, is considered a strong addition to an investment portfolio. This is because the value of precious metals nearly remains constant even in the most unsteady financial environment. Also, the value of bullion does not fluctuate sporadically and in fact, their value tends to grow in terms of global worth and liquidity. However, the price of bullion does change on a day to day basis.

    Silver bullion can be bought from banks, brokerage firms, coin dealers, and precious metal dealers. The value of silver bullion depends on its purity and its melt value. The melt value is the value of the bullion you would get once it is melted and sold. The purity value of silver bullion is usually set at 99.9% globally. If you are curious about silver bullion, here are 4 basic things you should know:

    Turning silver into bullion: Silver bullion is made by melting silver grain above 2192 degrees Fahrenheit. This turns the solid metal into liquid form, which is then poured into molds. These molds can be of ingots, bars and coins that turn the molten metal into silver bullion. The bullion is then stamped with purity, weight and other information.

    Types of silver bullion coins: The U.S Mint makes two types of silver bullion coins. There are special minted coins for collectors. These are called proof bullion coins, which are directly sold by the Mint in protective display cases. For general investment, the Mint produces uncirculated bullion coins. These are sold to authorized buyers only.

    Investing in silver bullion: Silver bullion is usually bought by investors as a guarantee against financial market instability. Silver bullion is usually a backup for volatile fluctuations in the value of paper currency. For instance, if the value of U.S. dollar falls drastically or is completely lost, investors with silver bullion will still have something on which they can rely.

    Low-cost silver bullion. Silver billion in the form of bars and cons are the most affordable investment. Silver bullion in the form of coins is affordable to buy and flexible to sell as well. This is due to their relatively low weight and value that makes it manageable while selling. For instance, a silver bar will weigh about one hundred ounces. You will have to sell one hundred ounces of silver. But if you have one-ounce silver coins that weigh one hundred ounces together, buying and selling become more flexible.

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  • 4 things to know before investing in silver bullion

    Silver bullion is one of the most stable investments preferred by the most seasoned investor. This is because bullion is considered as a stable option in the ever-fluctuating financial environment. An investment in silver bullion can be a prudent decision for preserving as well as increasing the value of your wealth and investment portfolio.

    However, investing in silver is easier said than done. You need to carefully research and investigate the various aspects of silver bullion including purity content, the value of the bullion and the source from where you will be buying. If you are thinking about investing in silver bullion, here are 4 things you should know about:

    Reason to buy silver bullion: Silver has been one of the most versatile precious metals. In the commodities market, it is apparently the second-most popular option. Although the price of silver bullion changes every day, it not as volatile as other investment options. Also, when the value of paper currency drops, silver bullion can be a solid fallback option for investors.

    Types of silver bullion to invest in: Experiences investors and speculators buy silver in various forms that include silver bars, bullion coins, numismatics coins (collectors’ coins), ingots and ‘paper’ silver. For the generic investor, American Silver Eagle is the best and safest option. Produced by the U.S. Mint, this coin is the global standard for silver bullion coins. These coins are usually sold in tubes called Silver Eagle Mint Tubes; one tube has 20 American Silver Eagle coins. These are also available in a monster box, which holds about 500 silver bullion coins each weighing one ounce.

    Where to buy silver bullion from: One of the best places to buy silver bullion coins is from a bank. Another option is to buy from authorized dealers. A point to note here is the banks charge lesser markup prices for bullion. A dealer will always want a bigger profit margin, so you will have to pay more if you buy from a dealer. Make sure that you consult a financial advisor before you decide to invest in silver bullion from sources other than an authorized bank.

    Taking the delivery: If you decide to buy silver bullion from other sources and not from a bank, make sure that you personally receive the delivery of your valuable investment. Do not trust sellers and dealers who promise delivery at a later date or say that the coins will be delivered to a secured facility or account.

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  • How to invest in stocks

    Stocks, while more volatile that other investment options can also give you great returns on your investments. There are some essential rules that you need to follow to minimize the risk you take and maximize your chances of gaining from the investment. So, let’s take a look at these rules:

    Decide your risk threshold and the type of stocks you’ll invest in:
    Depending on whether you set aside part of your income to invest or invest from any surplus income, it is important to first recognize the risk and uncertainty you’re willing to handle. This will be important when you select the type of stocks to invest in. Different stocks have different levels of volatility and return on investment, and you need to find the ones that meet your needs.

    Decide who manages your stocks:
    Depending on how much you’re investing, and how much time you have to study the stocks, companies, and the market, you need to decide if you’ll manage the stocks yourself, or have a broker or organization do it.

    Manage your expectations:
    The most important step in investing is to manage your expectations of gains and losses. While the market can be volatile at times, there are plenty of stocks that have stability and steady growth. Expect neither great gains nor large losses, and invest in a broad portfolio of stocks which will protect you from both.

    Let discipline be your mantra:
    Both in investing and managing your stocks, maintain a disciplined approach. Don’t make rash decisions based on market trends, advice from fellow investors, or advice from investment gurus. Analyze your interests, knowledge, and understanding of a situation before buying or selling a particular stock.

    Monitor and make decisions:
    Monitor the company’s news, updates and performance as well as the industry’s and make decisions related to your stocks even if using a broker. Don’t rely solely on the third-party you’ve hired, as they often have set procedures to follow in how investments are made.

    These are simple rules to follow when investing in stocks and they can go a long way in ensuring you don’t take unnecessary risks while trading. Just as important is to constantly evaluate your needs, and manage the amount you have invested at a given time. Investing is not only about trying to make money off the market but is also a way to maintain a broad investment portfolio keeping you at relatively low risk while handling your finances.

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  • The Pros And Cons Of Investment With Banks And Financial Institutions

    Almost everyone wants to retire young and rich. That’s why most people want to start investing so that they get a high return on the money that they have. This lets the money to continue to flow in. You can choose banks or financial institutions for this purpose. Here are some of the pros and cons of investing in conventional methods like Bank fixed deposits, versus financial institute mutual funds.

    Fixed Deposits

    Fixed deposit is an investment plan where you invest a sum of money in a bank for a set period (tenure) with a specific rate of interest. This is one of the most common investment approaches with banks.
    Pros:
    Low risk
    The safest investment with a bank is a fixed deposit. It gives steady growth and provides maximum security to your principal amount.
    Assurance
    When you open a fixed deposit, the interest rate is predetermined and remains the same throughout the term. This means that the growth of your principal isn’t subject to any other influencing factors.
    Tax benefits
    You can get tax benefits when you start a fixed deposit. Your taxable amount will be deducted according to the deposit you’ve made.

    Cons:
    Lower earnings
    When compared to other investment plans, these have a very low rate of return. Although it’s risk-free, the earnings are mediocre at best.
    The effect of inflation
    When compared to inflation, FDs don’t offer returns good enough to beat the inflation. They’re just a decent investment that offers security at most.
    Taxable
    In spite of having tax benefits, FDs don’t entirely save tax. The returns you get after maturity are taxable. This means you won’t get the full benefit of your investment. That’s a major drawback.
    Low liquidity
    FDs come with a lock-in period. This takes away flexibility in your investments.
    A premature withdrawal has two side effects. First, you’ll be charged a fee for pre-closure. Second, the interest rate reduces. Both are losses that should be avoided.

    Mutual Funds
    Stock or equity is the ownership of shares in a company or business.
    Pros :
    Highest returns
    From all investments option, equity/stocks are the best when it comes to returns. If invested properly, the average returns ranges from 12-15%. Some good investors can even reach numbers of up to 20%.
    Liquidity
    Another advantage with stock investment is that you can withdraw your money anytime you want.
    This flexibility works better in the long run since it lets you keep control of your money.
    Tax-free Dividend
    Many companies give regular dividends on stocks. That’s a great way to generate an alternate income. The best part is that is that it’s not taxable.

    Defeat Inflation

    With returns being high, stocks are a great option to beat inflation significantly.
    Cons:
    Highest Risk
    Equity is the least secure investment you can make. With some strategic planning and proper management, this can be avoided to an extent.
    Reallocation
    Equity funds don’t perform all that well when you leave them to mature like FDs and PFs. They need to be monitored regularly.
    According to market fluctuation, certain funds might not perform well. In those times, you should reallocate these funds to a more profitable organisation. This isn’t easy and needs you to monitor the market regularly.

    Whether you’re investing with banks or financial institution, both have their own merits and demerits. You should take a call based on your current status and financial goals that you’ve set.

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