Investing Information

Ask the sec - investing


Who is the SEC and why must I ask them anything? The Securities and Argument Administration in Washington, DC is the command chest of drawers that regulates the securities industry. They make the set of laws that all stock altercation scheduled companies, brokerage houses and mutual funds must follow.

My readers know that I am a believer in the acquire of mutual funds for investment and retirement accounts. The argue is that very few associates are capable to decide stocks. Sorry to say that also applies to many mutual fund managers exceptionally when you look at the carrying out of the bulk of funds for the year 2000.

I can absolve the be an average of Joe for not being able to pick winners, but I cannot acquit a fund executive who is paid huge amounts of money (always 6 numbers and commonly 7 figures) to lose the cash of the diminutive citizens who invest. There are 77,000,000 owners of mutual funds and 80% of them have less than $50,000 in their accounts. Why is everybody charitable them their money to have them lose it? These are the "experts".

Yes, they are held responsible to you, but there is only one way to make that responsibility catalog and that is to close out your account. If you are trailing money then take it away from your flow "expert" and put it with a mutual fund that is now going up. And when that one starts down you button to an added one that is going up. My be subjected to shows you will not be varying more than about once or twice a year. But you will not give back 30% to 50% of your money by doing this.

You see mutual fund managers are paid not on performance, but on how much money they have in the fund. That is one of the reasons they all the time tell you to Buy and Hold. You buy. They hold. They make money. You don't.

Back to the SEC. Here is what you need to ask them. Why can't mutual fund managers be paid a percentage of the profits they cause moderately than skimming a percentage off the top every year even when they lose the customers' money? I doubt you will get a satisfactory answer, as you can be sure the mutual fund lobby has more affect than you do. The same may be true if your Congressman were to institute that as a law. He gets crusade assistance from the lobbyists.

This rule is by now being permissible for hedge funds, which are very alike to mutual funds; however, only rich associates can buy these. Maybe it is time a celebrity had the SEC look after the safety of the small mutual fund investors. If you get an come back with delight let me know.

Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of associates make money and keep their profits with his clean 2-step method. Read the first interval at http://www. mutualfundmagic. com and ascertain why he's the man that Wall Street does not want you to know.

Copyright 2005


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