Adding Funds

Someday you may want to retire and continue to live in the life style to which you have become accustomed. According to conventional wisdom you will need less money because you will have fewer expenses than when you had to go to the office every day. Maybe. Let's hope so.

Unfortunately, it doesn't always work out that way so you had better have saved enough cash to supplement the social security and pension plan income (if you have one).

My philosophy is to save with mutual funds as they are the safest way to invest in the stock market. There is one and only one basic criteria as to which mutual funds you should own. That fund or all those funds if you own more than one must be outperforming the S&P500 index (which is just an average) during the last 12 months.

Don't listen to the Wall Street gurus who tell you to buy a "good" fund and stick with it. The only good fund is one that is doing better than an average because you don't want your money doing a below average job. The hogwash you get from the great stock market "experts" is you need to look at how a fund has performed over the last 3, 5 or 10 years. Double hogwash. Ever hear the story about "what have you done for me lately"? It holds true for mutual funds.

Look up the big fund manager names on Wall Street. You will find that in the last 10 years all of them have had periods when they did not do an average job. You don't want to own any of their fund while this guy is going through a 'cold' period.

Every week the Investor's Business Daily paper publishes a list of various funds citing their performance over the past 36 months, 24 months, 12 months, 9 months, 6 months and 30 days. If you have the time and the right brokerage company you can pick the "hot" short term winners and switch from one to another at no commission charge. It does take time and effort.You will trade less frequently and you can get an excellent return on your money if you decide to go with the best performance over the last 12 months and you limit yourself to switching only if your fund falls out of the list..

When you are adding a small amount monthly to your IRA or 401k you will want to specify where those additional funds are to be invested. Always put them in the best performer at the time.

If you own more than one fund, say six, you should sell the weakest one and transfer your money from number six to number one. Sell the dog and invest in the top performer. Prune your portfolio monthly. Every fund manager will tell you this is too simplistic. It works. He is lying. Why? Because he is being paid on the amount of money in his fund and not upon the performance of the fund. It is called 'you buy, he holds'. It is a loser; he is a professional loser. Why should you be a loser too?

Review your funds' performance monthly and stay with the best ones. Retire early.

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

In The News:

What India’s top three mutual funds bought and sold last month  LivemintInflows into Indian equity mutual funds rose for the fourth straight month in August even as the nation's stocks suffered their worst three-month period since 2016.
I would always recommend mutual funds over individual stocks: Anand Rathi  LivemintThe effort needed to manage individual stocks is much higher than the effort required for mutual funds.Anand Rathi talks about the ongoing economic slowdown ...
Ashok Leyland, YES Bank, PNB Housing among 30 stocks AMCs bought, sold in August; do you own any?  Moneycontrol.comInflows into equity funds improved during August to Rs 9152 crore from Rs 8113 crore in July 2019.
If you are wondering which stocks to buy, top fund house offers cues  Economic TimesHDFC Asset Management, India's largest money manager by assets, was busy buying select banks, PSU and infrastructure stocks all through August, even as ...
Top 10 mutual fund picks that withstood market mayhem to cushion fall in returns  Economic TimesWhen 80 per cent of the stocks in the domestic market have seen wealth erosion in the ongoing selloff, even the seasoned money manager has not remained ...
Why you should invest in multi cap mutual funds  Economic TimesMany advisors are recommending multi cap funds in the current environment to investors. This scheme which bundles large-, mid- and small cap stocks is often ...
What mutual fund managers are doing in the current market?  Economic TimesThese are trying times for the mutual fund managers. A bleak economic scenario coupled with countess stark data points have severely impaired the sentiment ...
Top stocks mutual funds bought and sold in August 2019  CNBCTV18Domestic mutual funds remained net buyers for a fourth straight month, resulting in an overall inflow of Rs 1.02 lakh crore in August, much higher than Rs 87000 ...
Best small and mid cap mutual fund managers 2019  Economic TimesHere are the top 5 fund managers in the small and mid cap category who have created the most wealth for investors.
Top 30 stocks that fund managers bought & sold in July; do you own any?  MoneycontrolMutual funds net bought Rs 14,846.75 crore worth of shares last month. Their inflows into equity funds also improved to Rs 8,113 crore in July, rising nearly 6 ...
ET Markets Special Podcast: How will market react to FM economic booster come Monday?  Economic TimesHi, this is Saloni Goel and you have tuned into ETMarkets' Special Podacast. Equity investing may look easy when stocks are down in the dumps, but separating ...
Diversify your portfolio by investing a portion in US-focused mutual funds  MoneycontrolDeveloped markets such as US have delivered significant returns over market cycles.
Franklin India Feeder - Franklin US Opportunities Fund: A good avenue for exposure to US stocks  BusinessLineGeographical diversification and unique opportunities bolster case for investing.
Heads up! Time to get into small & midcaps; 10 stocks looking attractive for long term  Moneycontrol.comIt is time to take note of small and midcap stocks, as most experts say the valuations are looking attractive and the froth in the broader markets seems to have ...
Stock market investor? Here are a few tips for making timely exit  Business StandardIn the Mahabharata, Abhimanyu, son of Arjun, knew how to enter the chakravyuha but was not aware of how to exit it. This cost him his life. Many stock market ...
Stock market crash? No Problem: Here are 4 steps to embrace it with a 'bear' hug  MoneycontrolThe stock market crash is the best excuse you can use to rebalance your portfolio. Getting rid of the non-performing investments and realigning your portfolio.
When equity mutual funds offer negative returns, here’s what you do  Economic TimesThe need of the hour is to stay insulated from the panic in the market.
Mutual Fund Update: Stocks that attracted fund managers in July 2019  Dalal Street Investment JournalIf we look at the June 2019 data, we find that the financial sector was the one that was on top of the buying done by the fund managers. Even in the month of July ...
Growth Stocks: How This Hot Mutual Fund Seeks Winners, Avoids Also-Rans  Investor's Business DailyJanus Henderson Forty Fund is a bottom-up investor in growth stocks. But it can't ignore macro risks like a technology cold war between the U.S. and China.
Best Mutual Funds Invest In IBD 50, Large Cap Stocks Like Visa, PayPal, Twitter  Investor's Business DailyIn addition to Twitter, Microsoft and Paycom, the best mutual funds are investing heavily in Visa, Mastercard, Global Payments, PayPal and Paysign.
Mutual Fund Investment: 5 reasons to invest in tax saving mutual funds  The Financial ExpressWhile there are various tax-saving investment options such as NPS, NSC and PPF, among others, tax-saving mutual funds have remained the most preferred.
Sundaram Mutual Fund garners Rs 358 crore via equity fund NFO  Moneycontrol.comSundaram Mutual Fund has collected Rs 358 crore from 30,932 investors through the launch of Sundaram Equity Fund, according to a press release from the ...
A bad time for stopping your SIPs  Economic TimesActually, theres never a good time for stopping your systematic investment plan.
The Mutual Fund Show: Gold Bonds, Gold Funds Or Gold ETFs — Which Is A Better Investment Option?  BloombergQuintThere are essentially three ways to accumulate the metal in a non-physical form—sovereign gold bonds, gold exchange traded funds and gold funds.
How retail investors tripped up on Yes Bank – Zerodha CEO releases data in blog post  LivemintZerodha CEO said 2 lakh people out of the 7 lakh who have demat accounts with Zerodha, hold Yes Bank stock and his clients are collectively sitting on an ...
Resilient U.S. Growth Propels Stocks as Trade Fears Ease  The Wall Street JournalInvestors are piling back into stocks and unwinding massive bets on haven assets, illustrating renewed faith that a resilient U.S. consumer can continue ...
Big relief for stock market, equity mutual fund investors; Enhanced surcharge withdrawn  The Financial ExpressThe FM has announced relief from the enhanced surcharge on the long term and short-term capital gains arising in the stock market transactions.
Yes, Passive Investing Has Exploded. But Here’s Why Fears of a Bubble are Overblown  FortuneConcerns are growing that passive investing is dangerous for the global markets. Here's why you shouldn't change up your investment strategy.
Mutual Fund Update: Stocks sold by fund managers in July 2019  Dalal Street Investment JournalIn our last update we listed the top 5 stocks that attracted fund managers in the month of July 2019. Now let's have a look at top 5 stocks that witnessed a lot of ...
Equity mutual fund managers buy the dip amid a huge downturn in market  Business StandardDomestic money managers lapped up shares of several companies amid a huge downturn in the market last month. Equity mutual funds (MFs) bought shares ...
End of Era: Passive Equity Funds Surpass Active in Epic Shift  BloombergIt's official: inexpensive index funds and ETFs have finally eclipsed old-fashioned stock pickers.
10 Superb Defensive Stock Funds  Morningstar.comEven infrequent readers of Morningstar.com probably know that when it comes to stock investing, we're advocates of a wide-moat approach: We favor ...
Sebi allows mutual funds to tie up with banks to rejig exposure  Economic TimesMumbai: Mutual Fund (MF) houses can now join hands with banks to rejig exposure and throw lifeline to stressed corporates --- albeit with a few conditions.
Financial Stocks See Worst Foreign Fund Outflows In Over Seven Years In August  BloombergQuintBanking and financial shares saw the worst foreign fund outflows in seven-and-a-half years in August as overseas investors continued to sell after Finance ...
9 Top-Rated ETFs to Buy  U.S News & World Report MoneyThese funds provide the best diversified exposure to the stock market.
Mutual Fund Trend: Infosys, REC and UPL among most sold stocks by MFs in July  Zee BusinessMutual Fund Report: Domestic equity mutual fund inflows continue to show resilience despite market volatility, with July inflows touching Rs 73 billion – a 9M ...
How much money can I make in mutual funds?  Business Insider IndiaA large number of investors are investing in mutual funds to grow their money. As is the case with any investment instrument, your money can yield very high.
Good time to invest in India with a long-term view: Mark Mobius  Moneycontrol"India will continue to grow in the long-term, but there is a lot of confusion w.r.t taxation," Mark Mobius, founder of Mobius Capital Partners LLP said in an ...
CNBC-TV18 Market Highlights: Sensex ends 281 points higher, Nifty above 11,050; OMCs gain, BPCL up 6%  CNBCTV18Indian shares ended higher on Friday, tracking gains in Asian peers, led by oil & gas, banking and auto stocks. The Sensex ended 281 points higher at 37385, ...
Weekly Wrap: Defensive Funds, Rating Updates, and How Much You Need to Retire  Morningstar.comWe recap the week on Morningstar.com and note the most popular stocks, funds, and ETFs.
Buy these 15 handpicked stocks for 11-44% return in next one year  MoneycontrolNifty corrected more than 1,000 points in the last two-and-half-months from its record high, dented by the economic slowdown, liquidity crisis, dismal earnings ...
Mutual funds cannot invest in STDs of a bank that has invested in the scheme: Sebi  Economic TimesMumbai: The Securities and Exchange Board of India (Sebi) on Friday said that mutual funds will have to ensure that no funds of a scheme is parked in ...
Mutual Fund Update: New Fund Offers (NFOs)  Dalal Street Investment JournalIf we look at the funds which are open for subscription this week, then there are 67 per cent of the close ended type and 33 per cent of open ended type funds.
Passive Funds Outshine Actively Managed Ones: 3 Winners  Yahoo FinanceInvestors grew an appetite for low-cost passive funds after the last financial crisis.
Shopify Stock, Chipotle, Paycom, Starbucks, McDonald's Just Triggered This Long-Term Sell Rule  Investor's Business DailyShopify stock, Chipotle stock, Paycom stock, Starbucks stock, McDonald's stock, Alteryx stock and Universal Display stock triggered a long-term sell rule.
Mutual fund investors keep faith in stocks despite market rout  LivemintMumbai: Investors in Indian equity mutual funds bought more last month, unfazed by the selloff that saw the nation's $1.9 trillion market log its worst July in 17 ...
What India's biggest mutual funds bought and sold in July  LivemintInvestors in Indian equity mutual funds bought more last month, unfazed by the selloff that saw the nation's $1.9 trillion market log its worst July in 17 years.
Goldman Sachs Finds 5 Top Stocks Mutual Funds Have Loaded Up On  24/7 Wall St.To say that mutual fund portfolio managers tend to follow the herd is an incredible understatement, and it always has been. While publicly they sometimes seem ...
'SBP must connect expat investors with local mutual funds'  Business RecorderAdnan Afridi has more than two decades of international experience in change management, business transformation, innovation and profitability enhancement ...
Stocks To Watch: Funko, PagSeguro, 3 Other IPO Stocks In Strong Demand  Investor's Business DailyPagSeguro, Funko, DocuSign and these two other IPO stocks to watch are showing strong instututional demand among top money managers.
Is it time to stop investing in equity mutual fund schemes?  Economic TimesIt is difficult to predict the market but many pundits feel it clearly needs some firm signal from the govt.
Retirement Planning That Protects Your $1 Million Savings  Investor's Business DailyYour retirement planning has paid off. You've saved $1 million. Now you're wondering how long $1 million will last in retirement.
Why picking the right mutual fund is key in a tough market  LivemintWhy have mutual fund (MF) returns fallen? Mutual funds primarily invest in equity (stocks) or debt (bonds). On the equity side, mid and small cap MFs have given ...
Top 10 stocks that mutual fund managers bought and sold in March 2019  Moneycontrol.comData for equity flows into mutual funds for March came as a breather after a weak February. An increase in net inflows in equity and income category led to the ...
MF shopping list: Top 30 stocks that fund managers bought & sold in June  MoneycontrolMutual funds increased allocation to private banks, consumer, utilities, technology, NBFCs, retail, metals and PSU bank stocks in June, an ICICIdirect report said.
Should you invest in international mutual funds?  LivemintIf you were to sort all equity mutual funds available for retail investment by their one-year performance, international funds would come on top. The best ...
Investors lose hope in stock market  Himalayan TimesKathmandu, September 14. As the government has not responded to the demands set forth by the investors the secondary market has been in a continuous ...
Invest in reliable outperforming mutual funds: Here are 8 of these  Economic TimesThese funds tend to score well on risk-adjusted metrics and hold dependable stocks in their portfolios.
Consider investing in direct stocks only if you can monitor portfolio proactively  LivemintDirect stocks can be considered if you have the ability to do research to identify the stocks to be bought as well as to be sold.You should be revisiting your ...
Is it time to switch to index mutual funds?  Economic TimesBy Rishabh Parakh It is one of the hottest topics debated these days: is it time for mutual fund investors to switch to passively-managed index funds from their ...
Mutual funds’ exposure to this space at all-time high; should you buy?  Economic TimesMoney managers on Dalal Street continued to shower affection on private banks for the ninth successive month as their exposure hit 19.90 per cent in June, ...
What India's three largest mutual funds bought and sold in June  LivemintInflows into Indian equity mutual funds jumped the most in three months in June.India's top money manager HDFC Mutual Fund held $22 billion in equities.
Mutual funds shooting themselves in the foot?  Economic TimesWhat if banks take a leaf out of Kotak and HDFC Mutual Funds' decision to direct investors to come another day to get their money instead of paying them on the ...
What India's top three mutual funds bought and sold in March  Economic TimesIndias largest money manager held 1.5 trillion rupees in equities.
Equity mutual funds are offering negative returns. What should investors do?  Economic TimesAll equity mutual fund categories have been offering negative average returns in the last one year. Small cap and mid cap schemes were hit the most, with ...
Sensex's rise from 20K to 40K: 5 lessons for equity mutual fund investors  Economic TimesWe look at some critical lessons that equity fund investors learnt during the journey of Sensex reaching 40K.
Here are a few mutual funds that stocked up on YES Bank in Q4FY19  Business StandardShares of YES Bank tanked 30 per cent in trade on Tuesday, after the bank reported a massive Rs 1,507 crore loss in the fourth quarter of financial year 2018-19 ...
Mutual fund investors showing great appetite for assuming risk: Dhirendra Kumar  Economic TimesOne would have thought that new investors who came into mutual funds will be running away. But they are getting into riskier category of funds and the scale of ...
Flows into mutual funds revive in May as Modi win seems to spur risk demand  LivemintFlows into Indian equity mutual funds in May rebounded from the smallest in 31 months as Prime Minister Narendra Modi's comfortable electoral win spurred ...
What India's top three mutual funds bought and sold in May  LivemintInflows into Indian equity mutual funds in May rebounded from the smallest in 31 months as Prime Minister Narendra Modi's comfortable electoral win spurred ...
Actively-managed large cap mutual funds poised for a comeback  Economic TimesDefying predictions of their imminent irrelevance, some actively-managed large cap mutual fund schemes have bounced back to the top of the return chart.
What top mutual funds bought and sold last month  LivemintMumbai: Inflows into Indian equity mutual funds in January were the smallest in two years as heightened market volatility and political uncertainty cooled ...
Value mutual funds have given good returns over long term but can underperform in short term  Economic TimesOver the years, the benefits of value investing have been espoused by several market gurus and fund managers. Discussions around this investing philosophy ...
A Portfolio for All Seasons -  State College NewsYour investment portfolio should be prepared for all seasons. Different sectors of the market perform better than others at different times. Even though they ...
Mutual funds or direct equity investment – which is better?  Economic TimesOne big question that often dogs investors is which investing option should they opt for: mutual fund or direct equity? Katalyst Wealth's Ekansh Mittal ends your ...
A mutual fund for daughter's education  Economic TimesIf you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.
How income from stocks and mutual funds are taxed for an individual  Moneycontrol.comCapital gains from transfer of unlisted share are considered as STCG where period of holding is less than or equal to 24 months, and LTCG when holding period ...
Mutual fund SIPs don't make equity investing risk-free. Here's why  Economic TimesSIPs do reduce the risk of market timing & allow investors to buy more units when their price falls.
A young investor’s guide to mutual funds  Economic TimesMany young investors, who are barely a year or two old in their career, are eager to start investing in mutual funds. ETMutualFunds.com receive many queries on ...
Can mutual funds give multibagger returns like stocks?  Economic TimesStocks can be multibaggers. They can offer extraordinary returns in a very short period. Can mutual funds ever do that? This was a question thrown at Rajeev ...
Index mutual funds see 60% jump in assets in a year as actively managed funds struggle  Economic TimesIndex mutual funds — a category that aims to mimic returns of benchmarks, like Nifty or Sensex — have seen their assets surge 60% over the past one year as ...
Mutual funds bet big on these 30 stocks in November; do you own any?  Moneycontrol.comThe Indian equity market rose about 5 percent in November but what was more heartening to see was inflows into mutual funds. Investors pumped Rs 1.4 lakh ...
6 bad money habits that investors should give up  Economic TimesSome habits can exact a heavy toll on your finances. We look at a few common ones that you should give up.
How concentrated is your mutual fund portfolio?  LivemintA concentrated portfolio can backfire badly if the fund manager's strategy goes wrong.A portfolio with few stocks can fall sharply if share prices of most stocks in ...
Stay away from stock tips  LivemintIf taming the stock market was easy, everyone would do it.Losing money in market is real and facing volatility is part of the deal.
Should investors with very long term horizon always pick small cap mutual funds?  Economic TimesMutual fund investors assume that their risk taking ability goes up if they have really long investment horizon.
These 24 mutual fund schemes have consistently given over 20 per cent returns  Economic TimesMutual fund managers and advisors always ask investors to choose schemes with a consistent performance record. The point is your scheme is supposed to ...
Should you invest in algorithm-based quant mutual funds?  Economic TimesQuant funds work on a data-driven model that relies on a mix of parameters and algorithms to identify the right stocks at the right time. But can they beat actively ...
Top 8 most common mutual fund investing mistakes and how to avoid them  Business StandardMutual funds garnered Rs 8,022 crore of its assets by way of SIPs in December 2018, 29 per cent higher than the previous year | Illustration: Binay Sinha ...
Top 30 stocks that fund managers bought & sold in March; do you own any?  Moneycontrol.comData for equity flows into a mutual funds for March came as a breather after a weak February. Increase in net inflows in equity and income category led to the ...
Best mutual funds to invest for five years  Economic TimesIf you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.
Govt tweaks rules, increases limit to disclose investment in stocks, mutual funds for employees  Economic TimesNew Delhi: The Centre has increased the over 26-year-old monetary limit on disclosure of investment in shares and mutual funds by employees to six months of ...
Why do wealth managers recommend multi cap mutual funds?  Economic TimesMany wealth managers believe multi-cap funds are a good starting point for long-term investors, specially those using SIPs for wealth creation.
Top 25 equity mutual funds failed to deliver positive returns in June  Economic TimesNEW DELHI: Top 25 mutual fund schemes, managing retail money in excess of $1 billion (Rs 7,000 crore) each, failed to deliver positive returns in June.
Stick to MFs if you lack knowledge on stocks  LivemintWhile equity is surely the way going forward considering your age and the financial goals, how you buy in equity is important.Direct stocks work very well if done ...
First-time investors can look at these mutual funds for long term  Economic TimesInvestors, who were waiting on the sidelines for the uncertainty to recede, are now looking to deploy their cash. But, valuations remain steep.
I have been investing in mutual funds via SIPs. Should I make any changes in my schemes?  Economic TimesI have been investing for the past year in the following funds via SIPs: Rs 2,000 in SBI Magnum Multi Cap, Rs 1,000 each in SBI Equity Hybrid Fund and Canara ...
Value Line, Inc. (NASDAQ:VALU) Sees Large Increase in Short Interest  TechNewsObserverValue Line, Inc. (NASDAQ:VALU) saw a large growth in short interest during the month of August. As of August 31st, there was short interest totalling 10700 ...
Understand difference between large-cap, mid-cap and multi-cap mutual funds when investing  Economic TimesExperts say large and mid cap mutual funds have carved a niche for themselves in portfolios.
MFs play safe, exposure to top 10 Nifty stocks highest in ten years  Economic TimesET Intelligence Group: It's rather lonely at the top. As vast segments of India's equity markets continue to reel under unremitting pain, mutual funds are gravitating ...

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