Investment Clubs

Because you don't feel too sure about which stock or mutual fund to buy you decide to become a member of an investment club. Each of the members contribute a certain amount of money each month and then meet to decide what to buy or sell.

It is a nice camaraderie, but what do you know about making money in the stock market? The members decide what services to buy to obtain information on stocks and funds. Certain members will be designated to do research on a particular stock and bring it to the next meeting.

The members become buried in gathering data ? doing research and forget that the end result is to make money. It is relatively rare to do any technical analysis. They gather reports from so-called investment analysts at the big brokerage firms. Recently the Securities and Exchange Commission has been investigating the recommendations of their in-house analysts because of the very poor results of their calls. Some have been accused of giving buy recommendations on stocks it was obvious were dogs. Let's hope the SEC does something besides a slap on the wrist.

We used to have a guy where I was a broker who wrote reports. He was told to do a report with charts and graphs. He said, "OK, do you want it to be bullish or bearish?" He could slant it any way we told him using the same facts and statistics and never tell a lie. The small investor is at the mercy of these people.

One of the greatest sources of information is Morningstar. They have every bit of information that is available about a company and they will sell it to you at a reasonable price. My problem with all this information is there is one important thing they cannot tell you - if I buy it, will it go up?

After more than 30 years in the business I will tell you that all the information you can gather about any company or mutual fund is totally and completely worthless. Trying to pick a winning stock is very difficult so what I do is let a very smart guy do it for me and he does it at no charge. How? Simple. I hire the manager of a no-load mutual fund that is currently going up and I buy that. As long as his fund is advancing in price I will keep it and as soon as it starts down I sell it and find a new smart fund manager who can make money for me.

There is no such thing as a "good" mutual fund. At times they are good and at times they are bad. Good is going up. Bad is going down. If a fund has been advancing for more than 60 or 90 days at the rate of more than 2% per month it will show up on my Buy list. I don't need to know anything else about it and no further research is necessary.

Show this to your investment club members. A chart is helpful, but the numbers will speak for themselves. The only research your club needs to do is find a no-load mutual fund that is advancing the most in the last 90 days. Forget about 3-year and 5-year performance. What has it done lately? Your club can be a winner every year.

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

[email protected]; 1-888-345-7870

In The News:

Best large & mid cap mutual funds to invest in 2019  Economic TimesThe re-categorisation and rationalisation of mutual funds by Sebi last year created some new categories, including the large & mid cap mutual fund category.
Fund managers' picks: Large, mid & smallcap stocks that MFs bought, sold in Dec  Moneycontrol.comMF assets declined to Rs 22.8 lakh crore in December 2018 from Rs 23.4 lakh core in Nov 2018 on the back of moderation in the flows in equity funds and ...
Under pressure to perform well, MFs bought & sold these stocks in December quarter  Economic TimesNEW DELHI: With back clearly to the wall after a not so pleasant year for equities, mutual funds (MFs) went about recasting their portfolios a bit in the December ...
Mutual funds may need smart bets on smallcap stocks to beat ETF show  Economic TimesSmallcap stocks could see up to ₹1 lakh cr inflow as fund managers look for potential winners: Analysts.
Hot and Cold Stocks of Mutual Funds in November 2018  MoneylifeIn November 2018, Axis Bank and ICICI Bank were the most preferred stocks of Indian mutual funds.
Remembering Jack Bogle, colossus of mutual fund industry  LivemintVanguard founder Jack Bogle turned the mutual fund industry on its head more than 30 years ago by thinking of and acting in the interest of the retail investor.
Small Cap Stocks: This Alger Portfolio Was 2018's Top Performing Fund  Investor's Business DailyIn 2018, $2.3 billion Alger Small Cap Focus Fund (AOFAX) blew away rivals that also focus on small cap stocks. In a year when the broad market, measured by ...
The dangers of high mutual fund inflows  LivemintIndian mutual funds have pumped about ₹1.2 trillion into the equity markets in each of the last two years.
This little-known tax plan beats every other ELSS fund; should you invest?  Moneycontrol.comKnow here what is Quant Tax Plan and why it is topping the charts.
3 JPMorgan Mutual Funds to Buy Now  Zacks.comBelow we share with you three top-ranked JPMorgan mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy).
Berko: Do not invest in Chinese stocks, mutual funds  The ColumbianDear Mr. Berko: My wife and I are thinking of investing in Chinese stocks or mutual funds. If we were to buy stocks, we'd invest $10000 each in Alibaba, Noble ...
Sebi issues norms for mutual funds investments in derivatives  Moneycontrol.comCurrently, mutual fund schemes are permitted to undertake transactions in equity derivatives but cannot write options or purchase instruments with embedded ...
What You Owe John Bogle, Iconic American Inventor  ForbesJohn Bogle arguably did as much or more for investors than any Nobel prizewinner, although he never won one. Along with Edison and Ford, Gates and Jobs, ...
When Rules of Thumb Fail  Morningstar.comFaulty Exits Tuesday's column discussed a research paper, “Selling Fast and Buying Slow: Heuristics and Trading Performance of Institutional Investors,” that ...
Sebi tweaks stock weightage norms for equity ETFs, index funds  LivemintSebi says an index used for equity ETFs or index funds should have at least 10 stocks as its constituents.
Investors pulled a record $143 billion out of active funds during December's plunge  CNBCAccording to data from Morningstar, actively managed funds experienced outflows of nearly $143 billion in December, their worst month ever.
4 Small-Cap Growth Mutual Funds for 2019  Zacks.comSmall-cap funds that offer good earnings potential could be your best bet amid economic tailwinds and growth projections.
The Best Mutual Funds to Buy in 2019  The Motley FoolHere are not only 17 mutual funds and ETFs to consider, but also tips on what to look for in great funds.
Founder of financial giant Vanguard, 89, dies  The Business TimesTHE BUSINESS TIMES Companies & Markets - JOHN C Bogle, who founded the Vanguard Group of Investment Cos in 1974 and built it into a giant mutual fund ...
RIL first Indian private firm to post Rs 10,000 crore quarterly profit; 10 takeaways from Q3 earnings  Economic TimesNEW DELHI: Reliance Industries (RIL) on Thursday put up a solid Q3 show by becoming the first Indian private firm to cross Rs 10,000 crore quarterly profit ...
Sick of Your Oil Stocks Getting Slaughtered? Try This Instead  The Motley Fool CanadaPicking individual stocks in the oil sector has been devastating for many investors. Choose an ETF like BMO Equal Weight Oil Gas Index ETF (TSX:ZEO) instead.
The Zerodha story: How the Kamath brothers built India's largest retail broker  Moneycontrol.comZerodha started its journey in 2010 with a team of five people. Today, it employs over 1300 people.
Take Buffett’s Advice: 5 Vanguard Funds to Buy  Investorplace.comWarren Buffett believes index funds are the way to go for most investors, making these five 'products' from Vanguard Funds worth owning.
Don’t overlook mid-cap stocks — they beat large-caps by a mile in the long run  MarketWatchCompanies with market values of $2 billion to $10 billion are selling at cheaper valuations than large-caps and small-caps.
John Bogle, Vanguard founder and index pioneer, a 'hero to investors'  The Australian Financial ReviewJohn Bogle, who popularised the low-cost index-based mutual fund as founder of Vanguard Group and insisted that most stock-picking money managers ...
7 stocks most favoured by mutual funds over last one year  Economic TimesAs the markets hit a speed bump, stocks favoured by mutual funds appear to be safer bets.
Is your mutual fund buying or selling stocks too much?  LivemintHere are equity mutual fund schemes with the highest turnover.
Atlassian Stock Pops As Quarterly Earnings, Revenue Top Expectations  Investor's Business DailyAtlassian (TEAM) on Thursday reported fiscal second-quarter profit and revenue that topped expectations and issued mainly in-line guidance for the current ...
Mutual funds bet big on these 30 stocks in November; do you own any?  Moneycontrol.comMF industry assets grew to Rs 23.4 lakh crore, on the back of improved inflows into liquid funds and steady equity markets.
Stock Focus: Investors Keen on Agnico Eagle Mines Limited (NYSE:AEM) as it Makes Headlines With Moves  The Coin GuildMajor market players are buzzing over Agnico Eagle Mines Limited (NYSE:AEM) as their share price hit $39.14 at the end of the most recent trading session.
Stock Watch: Investors Focusing on Shares of Maxwell Technologies, Inc. (NASDAQ:MXWL) as Company Makes Headlines With Moves  The Coin GuildMajor market players are buzzing over Maxwell Technologies, Inc. (NASDAQ:MXWL) as their share price hit $2.33 at the end of the most recent trading session.
Construction Partners, Inc. (:ROAD) Making Waves: Price Change Triggers Interest From Investors  The Coin GuildMajor market players are buzzing over Construction Partners, Inc. (:ROAD) as their share price hit $10.5 at the end of the most recent trading session.
Stock Focus: Investors Keen on Windstream Holdings, Inc. (NASDAQ:WIN) as it Makes Waves With Moves  The Coin GuildMajor market players are buzzing over Windstream Holdings, Inc. (NASDAQ:WIN) as their share price hit $3.05 at the end of the most recent trading session.
Worried You're Never Going to Be Able to Retire?  Kiplinger's Personal FinanceFive common threats to your retirement (and how you can tackle them now).
Fund managers ready to go shopping after sharp correction in stocks  Moneycontrol.comMutual funds that were holding around 8-10 percent cash level in their equity portfolio are likely to purchase shares of companies in banking and financial ...
Why stopping mutual fund SIPs when stock market falls can jeopardise your financial goals  Economic TimesFear has returned to Dalal Street. Caught in a perfect storm of weak macroeconomic numbers, the IL&FS crisis and fear of more defaults, equity markets have ...
Mutual funds' exposure to banks hits 3-month low of Rs 1.88 lakh crore in Sept  Economic TimesMutual funds' holding of banking stocks declined by over Rs 21,600 crore to Rs 1.88 lakh crore in September, driven by the correction in equity markets.
Check out what top five mutual funds bought & sold during October selloff  Economic TimesNEW DELHI: Mutual funds stood resilient as industry's asset base increased to Rs 22.23 lakh crore in October in spite of a heavy correction in the domestic ...
Mutual funds that destroyed most investor wealth in the September selloff  Economic TimesThe recent selloff in the stock market has raised fears of a rush for redemption in mutual funds.​
Five stocks that mutual funds think can outperform  Economic TimesA volatile month gave fund managers a chance to cherry-pick stocks.
Shall I buy the HDFC AMC stock or mutual fund?  LivemintThe HDFC Asset Management Co. Ltd stock closed 65% up on the first day of listing over its IPO price of ₹1,100 per share. Investors who sold on day one, saw ...
When should you sell your mutual fund schemes? - Stocks and equity mutual funds are different  Economic TimesInvesting in an individual stock and equity mutual fund scheme is different. You must look at various parameters like key ratios while investing in a stock. Hence ...
New stock ideas boost equity mutual fund portfolios  LivemintIt is imperative for mutual fund houses to beef up their research capabilities, to be able to identify more winning new ideas.
How stocks picked by mutual funds over 2014 to 2017 have performed  Economic TimesWhile the most wanted stocks of 2014 and 2015 have done well, the recent picks have disappointed.
Mutual fund lesson: What should you do in volatile markets?  Moneycontrol.comCost of investing in equities is that it is a volatile asset class- there will be times when your portfolio value will be lower than what you invested.
Investing in equity mutual funds versus investing in shares: Which is better?  Economic TimesBy Dhirendra Kumar Hopefully, by now my columns have convinced you that most of your long-term investments should be in equity. The next question to be ...
Are mid and small-cap mutual funds holding too many illiquid stocks?  Economic TimesLiquidity has been scarce in Indian capital markets in recent weeks. Mutual funds have also not been spared the pain, with liquid and money market funds ...
Why your mutual fund earned you less than Nifty in recent market rally  Economic TimesThe more the number of stocks in an index, the weaker is its performance.
How your mutual funds played the balancing act during stocks crash  Economic TimesBy Bhavana Acharya The last three months has been a bumpy ride for largecap stocks. The year so far has been unkind to the midcap and smallcap set.
Small- and mid-cap mutual funds open doors again, but should you invest?  LivemintL&T Emerging Businesses Fund and DSP Small Cap Fund have allowed *fresh* mutual fund investments, taking advantage of a continued correction in small- ...
Picking the best mutual fund: Are past returns relevant after re-categorisation?  Moneycontrol.comWhile selecting a scheme for investment or while deciding whether to continue with a current investment, a fund's performance track record does play a critical ...
Best mutual funds to invest in India  Times of IndiaFAQs News: Market analyst says that it would be difficult for investors to get high returns in 2018 pointing to the volatility faced by the stock market. The inv.
Mutual fund holdings in IT stocks touch all-time high  Economic TimesMumbai: Fund managers are betting big on the IT sector, on the back of an improving global macro environment, depreciating rupee and rise in IT spends.
Is it a good time to invest in small-cap mutual fund schemes?  Economic TimesDespite the slide in the Nifty Smallcap100 index, fund houses seem to be placing faith in small-cap funds again. Should investors take the cue?
5 strategies for investing in mutual fund in the current market to get good returns  Moneycontrol.comMutual fund investing is all about ascertaining your goals and setting out to reach them.
These 18 consistent mutual funds may help you to beat stock market volatility  Economic TimesMany equity mutual fund advisors abhor volatility in the stock market. They are always searching for ways to tackle this beast which gives them sleepless nights.
Why HDFC Bank stock is among the top picks of mutual funds  Business TodayPrivate sector lender HDFC Bank, the third-largest Indian firm by market capitalisation, is among the favourite stocks in the portfolios of mutual funds. Despite ...
List of best mutual fund portfolios as per your risk appetite  Moneycontrol.comYou can build a portfolio of mutual fund schemes based on your risk profile.
Do not make these 7 mistakes while investing in mutual funds  Moneycontrol.comNever forget that you are investing because you have to achieve your financial goals. Investing without a goal is akin to travelling without a destination.
Top stocks bought and sold by mutual funds in June 2018  IndiainfolineInvestors should focus on longevity to create wealth. We advise investors to stay invested in those stocks whose growth story is still intact.
Mutual Funds For First Time Manage More Money In Stocks Than Insurers  BloombergQuintMutual funds for the first time manage more money in equities than insurers as the last stock rout erased the gap that started narrowing after demonetisation.
Some international funds are giving around 40% returns. Should you invest?  Economic TimesInternational mutual funds are topping the return charts. The category has returned around 20 per cent in one year. Should retail investors bet on these schemes ...
Investing in stocks needs deep understanding of markets  LivemintDirect investing into individual stocks requires deep understanding of the markets and continuous involvement into investing.
How to Invest in Mutual Funds  The Motley FoolIf you want to understand how to pick the right mutual fund for you, you've come to the right place. In the guide below, I've put together all the major pieces of ...
Fund managers' bets: Top 10 large, mid and small-cap stocks that MFs bought in October  Moneycontrol.comMF industry assets grew to Rs 22.2 lakh crore on the back of improved inflows into equity-oriented and liquid funds.
Mutual fund managers bought & sold these 20 stocks in May  Moneycontrol.comRelative valuations are attractive and around average, but midcap valuations are still looking stretched despite the recent drawdown, Morgan Stanley said in a ...
Bleeding mutual funds: Should you go back to good old fixed deposits?  Moneycontrol.comAre you worried about the losses on your investments in mutual fund schemes? You are not alone. There are many investors who dumped their good old fixed ...
Top 10 large, mid and smallcap stocks which fund managers bought & sold in September  Moneycontrol.comFears of a liquidity crunch following the IL&FS crisis hit the mutual fund industry in September. Cash plans, or liquid funds, were the worst hit.
HDFC AMC, Reliance Nippon stocks fall over 9% after Sebi caps expense ratio of mutual funds  Business TodayThe stocks of asset management companies (AMCs) fell in trade today on fears of lower revenues after market regulator Sebi capped expense ratio for mutual ...
How much do mutual fund managers invest in their own schemes?  Moneycontrol.comEver since SEBI mandated mutual fund houses to disclose how much fund managers, directors of the asset management company and other key employees ...
How diversified should a mutual fund be?  LivemintThe extent of diversification is driven by the mutual fund's strategy and the market segment it invests in.
Should you shift from large-cap mutual funds to index funds?  Economic TimesThe index fund category of mutual fund schemes is slowly gaining traction among investors. The fortunes of index funds are changing as not only are they being ...
Mutual Funds Four Strategies For Managing A Portfolio Of Mutual Funds  InvestopediaNow that you've built your portfolio of mutual funds, you need to know how to maintain it. Let's talk about how to manage a mutual-fund portfolio by reviewing four ...
These 10 stocks make up over one-third of entire mutual fund portfolio in India; check full list  The Financial ExpressEven as Sensex and Nifty continue their strong rally driven by a cheer in blue chip stocks, just 10 top names make up a whopping 34% of the entire mutual fund ...
Sebi may tighten liquid MF rules  Economic TimesBy Pavan Burugula & Reena Zachariah The Securities and Exchange Board of India (Sebi) is considering a proposal to tighten rules for liquid mutual funds ...
Choose your mobile app wisely to invest in direct mutual funds  Moneycontrol.comSome mobile apps are not updated on regular basis. Often there may be errors in the stocks portfolio of several schemes.
What Is a Mutual Fund? Pros, Cons, Types and How to Invest  TheStreet.comKeep hearing about mutual funds but don't really know what they are? No sweat! TheStreet breaks down what a mutual fund is, the different kinds, and how to ...
10 mutual fund options that could be good bets as markets trend higher  Moneycontrol.comInvestment advisors feel this is time for caution and that investors should veer more towards funds with exposure towards large-caps or those that are multi-cap ...
Here are top buys and sells by mutual funds in August when Sensex, Nifty hit record highs  Moneycontrol.comAmong largecaps, HDFC AMC, Sun TV Network, TVS Motor, Vedanta and Tech Mahindra topped the August buying list of top 10 mutual fund houses which ...
FIIs, MFs bet on 138 stocks in last 1 year; should you buy?  Moneycontrol.comOut of the 138 stocks which witnessed increase in weightage on a year-on-year basis, as many as 14 stocks saw a correction of 20-80 percent in the last 1 year.
Top stocks bought and sold by mutual funds in April 2018  IndiainfolineMutual funds received record-breaking inflows of Rs6,690cr into the mutual fund industry via SIP in April 2018. During FY18, the mutual funds received Rs67 ...
India's Stocks Are Hostage to Fed Rate Cycle, Mutual Fund Giant Says  BloombergQuint(Bloomberg) -- For all the domestic drivers of India's stocks -- from oil to elections to shadow banking shakeouts -- the U.S. Federal Reserve holds the most sway, ...
See how they play market crash! MFs sold other stocks to lap up these 21 in October mayhem  Economic TimesPopular beaten-down stocks attracted big money from institutional investors on Dalal Street in October, when the domestic equity market was facing severe ...
Domestic mutual funds are selling these smallcaps and midcaps in hordes. Check out why  Economic TimesNEW DELHI: And you thought midcaps and smallcaps have been under pressure over the past three months because of the Sebi reclassification, requiring ...
Want to invest in ‘value’ stocks like Buffett? Look at these funds  Economic TimesValue investing is a strategy to spot stocks trading below their intrinsic values.
Smallcap watch: 2 stocks that have been big draw among mutual funds  Economic TimesTwo smallcap outsourcing players from the consumer electrical and appliances (CEA) space — Dixon Technologies and Amber Enterprises — have been ...
Best value-oriented equity mutual funds to invest in 2018  Economic TimesEven as the stock market stumbles along nervously, many investors are looking for tools to navigate the volatile times in the market. And suddenly everybody is ...
Should you invest in the new mutual funds categories introduced by SEBI?  Moneycontrol.comWhich of these categories are an option they should explore further and which one of them is good to give a miss?
6 mistakes that small investors make when stock market is doing well, interest rates are rising  Economic TimesThe biggest mistakes happen when markets are doing well. In many cases, the SIP returns are in the red.
List of mutual fund schemes across categories that can help you beat market volatility  Moneycontrol.comSome large-cap funds have a consistent track record of delivering favourable risk-adjusted returns. Here we list some recommendations:
Why stock brokers should get into mutual fund advisory  Morningstar IndiaVatsal Shah on how he diversified his business to build a successful mutual fund practice.
These 24 MF schemes have highest exposure to NBFC stocks. Are you invested in any?  Moneycontrol.comThe higher yield for the commercial papers is due to tight liquidity into the system. Investors raised concerns over the money market tightness amid continuing ...
MF Review: Keep 5-yr investment horizon for Parag Parikh Long Term Equity Fund  Moneycontrol.comThough the fund has done well over past five years, the investors must be prepared to tolerate short-term underperformance in case there is a sudden rally that ...
10 midcap counters where funds have been buying for six quarters  Economic TimesET takes a look at 10 stocks in which mutual funds have been consistently increasing their stakes.
Are smart beta mutual funds better than large-cap MFs?  Economic TimesSmart beta funds seeks to enhance returns from the base index by buying a larger proportion of stocks compared to their share in the underlying index.
How SIPs help investors buy low and sell high despite unpredictability of stock market  Economic TimesSystematic investment plans (SIPs) are the best way to invest in mutual funds. The benefits come as much from psychology as from maths.
The curious effect of mutual fund SIPs on Sensex, Nifty  LivemintMonthly inflows from mutual fund SIPs have more than doubled in the past two years and now stand at ₹7658 crore. This is despite the correction in the markets ...
MNC-themed mutual funds are top performers: Should you buy them?  Economic TimesThe consistent strong performance of MNC themed funds may be a compelling reason for investors to make space in their portfolio for these funds.
MF investors scoop up IT, pharma stocks  Economic TimesMUMBAI: Mutual fund investors are buying stocks in the information technology (IT) and pharma space as a depreciating rupee against the dollar is expected to ...
5 things not to do when the stock market is volatile  Economic TimesIt has been a wild ride for the Indian equity market this past week. The benchmark index, the Sensex, has lost more than 1,700 points since last Monday.

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