Money and Finance
I've been reading a couple of Finance blogs mostly by Singaporeans, and I noticed that one of them (name shall not be mentioned) has chosen to invest with OCBC Blue Chip Investment Plan (BCIP)
I did also talk about OCBC BCIP on a previous blogpost, http://teenageinvesting.blogspot.sg/2014/08/the-beginning-of-your-investment.html
Feel free to check it out!
Anyway, the point of this blog post today is to talk about Actively Managed Mutual Funds.
Now, what are they? Simply put they are funds that are managed by a Fund Manager or a team of Managers. You invest your money into this fund, and pay the manager a fee to invest on your behalf using the combined funds of multiple investors like yourself.
This works out fine if you're not into passive investing, and do not want to adopt a DIY style.
Signing off,
Teenage Investor
- Buffett Widens Lead In $1 Million Hedge Fund Bet
Link to: Buffett widens lead in $1 million hedge fund betFORTUNE -- Results are in for the sixth year of the competition sometimes called the $1 million bet, and Warren Buffett -- once a piteous straggler in this 10-year wager on stock market performance...
- Nate Silver: Confidence Kills Predictions
Found via Abnormal Returns. IU: How do you invest your own money? Silver: I’m actually a rather dull and conservative investor for the most part—I mostly just invest in index funds or mutual funds with low fees. One thing I know about the market...
- Mutual Fund Observer: April 1, 2013 Commentary
Found via Abnormal Returns. One addition I'd add to the list in the commentary is the Martin Focused Value Fund (MFVRX), which I believe is a little over 90% cash right now. For those interested in other managers who’ve followed Mr. Cinnamond’s...
- Buffett Seizes Lead In Bet Against Protege (video)
March 21 (Bloomberg) -- Warren Buffett made a friendly bet four years ago that funds that invest in hedge funds for their clients couldn’t beat the stock market over a decade. So far he’s winning. The wager that began on Jan. 1, 2008, pits Buffett...
- First Eagle Reopens Two Mutual Funds
First Eagle joins Longleaf and Third Avenue in opening previously closed funds recently.-Arnhold and S. Bleichroeder Advisers said on Tuesday it will reopen two of its First Eagle mutual funds that invest in overseas markets.-The $21 billion First Eagle...
Money and Finance
Investing In Actively Managed Funds
I've been reading a couple of Finance blogs mostly by Singaporeans, and I noticed that one of them (name shall not be mentioned) has chosen to invest with OCBC Blue Chip Investment Plan (BCIP)
I did also talk about OCBC BCIP on a previous blogpost, http://teenageinvesting.blogspot.sg/2014/08/the-beginning-of-your-investment.html
Feel free to check it out!
Anyway, the point of this blog post today is to talk about Actively Managed Mutual Funds.
Now, what are they? Simply put they are funds that are managed by a Fund Manager or a team of Managers. You invest your money into this fund, and pay the manager a fee to invest on your behalf using the combined funds of multiple investors like yourself.
This works out fine if you're not into passive investing, and do not want to adopt a DIY style.
The thing is, not all mutual funds may be beneficial to you. Some fund managers simply hug the index and then charge you exorbitant funds that eat into your otherwise decent profits.
Here, I will talk about various tips in choosing the best fund that you want to invest in.
1. Search for funds with relatively low cost / operating expenses.
Reason: If you are paying high operating expenses each month, and these are eating into your profits you're effectively throwing your money down into the drain. It's just not worth it.
2. Research into your fund and the manager's performance before making a decision. Never invest on a moment's impulsiveness.
Reason: Like I said, there is no point in paying a fund manager to follow the index and then charge you high prices for something you could have done yourself.
3. Does the fund have diversification?
Reason: If the fund invests in mostly stocks and high risk at that, one crash in the market may effectively wipe out your investments and others as well.
Of course, I still adopt the DIY strategy because I have the time. But when I don't in the future I may consider moving on to Actively Managed Funds. Some Investing is still better than none. And for those that took the first step, hurrah for you! You had the courage, now persevere!
Teenage Investor
- Buffett Widens Lead In $1 Million Hedge Fund Bet
Link to: Buffett widens lead in $1 million hedge fund betFORTUNE -- Results are in for the sixth year of the competition sometimes called the $1 million bet, and Warren Buffett -- once a piteous straggler in this 10-year wager on stock market performance...
- Nate Silver: Confidence Kills Predictions
Found via Abnormal Returns. IU: How do you invest your own money? Silver: I’m actually a rather dull and conservative investor for the most part—I mostly just invest in index funds or mutual funds with low fees. One thing I know about the market...
- Mutual Fund Observer: April 1, 2013 Commentary
Found via Abnormal Returns. One addition I'd add to the list in the commentary is the Martin Focused Value Fund (MFVRX), which I believe is a little over 90% cash right now. For those interested in other managers who’ve followed Mr. Cinnamond’s...
- Buffett Seizes Lead In Bet Against Protege (video)
March 21 (Bloomberg) -- Warren Buffett made a friendly bet four years ago that funds that invest in hedge funds for their clients couldn’t beat the stock market over a decade. So far he’s winning. The wager that began on Jan. 1, 2008, pits Buffett...
- First Eagle Reopens Two Mutual Funds
First Eagle joins Longleaf and Third Avenue in opening previously closed funds recently.-Arnhold and S. Bleichroeder Advisers said on Tuesday it will reopen two of its First Eagle mutual funds that invest in overseas markets.-The $21 billion First Eagle...