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:

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 ...
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Best ELSS funds to invest in FY 2019-20  Economic TimesHere are four ELSS schemes that are relatively new but have delivered superior risk-adjusted returns.
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Stock Mutual Funds Dominate List Of Best Funds For 2019  Investor's Business DailyWhen looking to add investments to your portfolio, you might want to start with the best stock mutual funds listed in the IBD Best Mutual Funds Awards for 2019.
The Pinterest IPO Might Have Made You Richer—Even If You Didn't Buy the Stock Today  FortuneYou didn't necessarily need to buy stock in the Pinterest IPO to make money off the public market debut of the online scrapbooking company. It's often difficult for ...
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Best Mutual Funds 2019 Awards Spotlight Top Market-Beating Funds Of All Kinds  Investor's Business DailyAre you looking for funds that beat the market recently and have great long-term returns too? Check out the winners of IBD's Best Mutual Funds 2019 Awards.
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Stocks in the news: TCS, Infosys, Dr Reddy's, Metropolis, Suven Life, Jet Airways, APL Apollo  Moneycontrol.comMetropolis Healthcare | Suven Life | Jet Airways | Mcleod Russel | Dr Reddy's Labs and APL Apollo Tubes are stocks which are in the news today.
450 fund schemes own this priciest lender & red flag is up on valuation  Economic TimesThe stock is favourites among both funds managers and market analysts.
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3 Northern Mutual Funds for Stellar Gains  NasdaqFounded in 1889, Northern Trusts manages assets worth over $1.1 trillion (as of Dec 31, 2018) based on assets raised in the country. The company.
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High-Wire IPOs Like Pinterest and Zoom Could Signal a Market Top  Barron'sStocks' melt-up could signal that the bull market has entered its final, blowoff stage. Also, will negative interest rates come to America?
On Investments: MarineMax and Miller Industries may be undiscovered gems  Omaha World-HeraldYour odds of finding an undiscovered gem are higher, in my opinion, in the realm of small stocks. That's why I've always been partial to them.
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4 Reasons Why a High-Dividend Stock Isn't Worth It  U.S. News & World ReportInvestors who want to amp up their income with high-dividend-yield stocks should think twice before buying a stock for its attractive payout. RELATED *CONTENT*.
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.
SoFi’s No-Fee ETF Launch Saddles Some Customers With Tax Bills  The Wall Street JournalSoFi recently launched two no-fee ETFs, marking its first foray into the $3.9 trillion U.S. ETF market. But the move stands to hit some clients with unexpected ...
When mutual funds make more sense than ETFs  The Globe and MailAlthough sales and popularity of ETFs have been on a tear, there are times when mutual funds may be preferable for some investors.
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 ...
Lyft Stock Is Crashing So Hard Even Its Early Investors Could Lose Money  MONEYSince going public in late March, Lyft's stock price has plummeted. Originally priced at $72 per share – the stock jumped as high as $88 on March 29, it's first day ...
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 ...
The 5 Best Vanguard Funds for Retirees  Kiplinger's Personal FinanceMost of Vanguard's offerings do right by investors, but these are the best Vanguard funds specifically for the retirement-minded.
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 ...
Quantum Mutual Fund uses cash pile to buy stocks cheap  Economic TimesQuantum Long Term Equity Value Fund, where value investing is the pronounced fund allocation theme, has brought down the level of cash at its plan to the ...
What top 5 money managers bought and sold in February  Economic TimesFebruary was the fourth consecutive month of decline in net investment into equity mutual funds.
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 ...
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.
Why it is a bad idea to always look for outperformers while investing in mutual funds  Economic TimesOne of the most important features that any investor, wealth adviser or anyone in the financial media looks for in an investment product is its track record in ...
Mutual Funds increase holding in ‘attractively valued’ oil & gas stocks  Economic TimesMUMBAI: Mutual funds have been adding shares of oil and gas companies such as GAIL, HPCL, BPCL and ONGC over the last few months, encouraged by ...
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.
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 ...
Here are 30 stocks that fund managers bought & sold in February  Moneycontrol.comEven the month of February witnessed the lowest inflow in equity mutual funds in the last 2 years. Only Rs 5122 crore of *fresh* inflows took place in equity funds.
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 ...
Fund managers ready to go shopping after sharp correction in stocks  Moneycontrol.comDomestic fund managers are capitalising on the market fall and buying shares as they feel the valuations have become attractive after a sharp correction in the ...
Inflows to equity funds slow for third straight month in Jan at Rs 6,158 crore  Economic TimesSluggish returns, volatile equity markets and India's complex political situation are having a bearing on investment flow into domestic equity funds. Inflows into ...
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.
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?
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 ...
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 ...
Why stock market volatility is beneficial for mutual fund SIP investors  Economic TimesWhile investing through systematic investment plans, you make more money precisely because the markets are facing volatility.
Why stopping mutual fund SIPs when stock market falls can jeopardise your financial goals  Economic TimesThe 806-point drop in the Sensex on Oct 4 was the fifth biggest single day loss in the past five years.
Gold, mutual funds, equity - where to invest in 2019?  Moneycontrol.comAs we enter 2019, the question on everyone's mind is: can we say goodbye to market volatility that 2018 unleashed upon us? The answer may not be that simple ...
How your mutual funds played the balancing act during stocks crash  Economic TimesAs with market cap allocations, equity funds seem to be maintaining their sectoral exposures.
Sebi seeks to make mutual funds' valuation process fairer  Economic TimesThe Sebi board approved easing of norms for raising of funds through instruments like real estate and infrastructure investment trusts.
Sebi issues new format for mutual funds' monthly report  Economic TimesFrom April 2019 onwards, AMCs will have to submit the MCR to Sebi in the new format by the third working day of each month.
Mutual fund investing for the conservative: Should you stick to largecap funds only?  Moneycontrol.comFinancial planners advocate investing in equity mutual funds to beat inflation and build a corpus that will cater to one's future needs, even if one is a conservative ...
Three large mutual funds opposed to L&T’s takeover of Mindtree  Economic TimesMUMBAI: Three large mutual funds holding shares of Mindtree are opposed to L&T's hostile takeover attempt of the mid-sized software company.
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 ...
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 ...
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.​
What India's top three MFs bought and sold in January  Economic TimesStock funds took in a net Rs 6160 crore, the least since January 2017.
10 small equity mutual funds that have given very good risk-adjusted returns  Economic TimesMany small-sized funds have delivered handsome risk-adjusted returns. Find out why you should not ignore them.
These are fertile grounds for long-term stock pickers, says Samir Rachh of Reliance Mutual Fund  Economic TimesSmall cap funds are going through a rough patch after a bull run in 2017. etmutualfunds.com spoke to Samir Rachh, fund manager, Reliance Small Cap Fund, ...
Mutual fund houses push sell button on auto and construction sectors  BusinessLineBut stock up on IT scrips amid redemption pressure.
Is it time to invest in mid cap and small cap mutual fund schemes?  Economic TimesMany market pundits believe this is the right time to enter in small cap and mid cap segments.
Top fund houses are busy lapping up PSUs; what’s behind this new-found love  Economic TimesNEW DELHI: India's top three mutual funds, which manage over Rs 9 lakh crore in debt and equity assets, added a number of PSU stocks to their schemes in ...
Planning To Invest Your Money? Here's A Beginner's Guide  NDTV NewsInvestment Tips For Beginners: One of the basic rules of investing is to start early so that time works in favour, experts suggest.
From Axis to ICICI: Mutual funds lap up private bank stocks ahead of rally  Business StandardDomestic money managers aggressively bought shares of private sector banks in February. Kotak Mahindra Bank and Axis Bank were the two most-bought ...
Are mid and small-cap mutual funds holding too many illiquid stocks?  Economic TimesIf your fund has too many illiquid stocks in its portfolio, it could really leave you in a spot.
Picking the best mutual fund: Are past returns relevant after re-categorisation?  Moneycontrol.comJuzer Gabajiwala. Investors always give a lot of weight to the past performance of returns. In fact, most decisions are always made on the basis of returns.
The dangers of high mutual fund inflows  LivemintMutual funds have put ₹2.4 trillion into markets in the last two years.Equity mutual funds receive ₹8000 crore monthly through SIPs.
How do mutual funds help you to invest better?  Moneycontrol.comMutual funds can provide you products that can meet your financial goals with relatively lesser risk.
Best small cap mutual funds to invest in 2019  Economic TimesHere is the monthly update on our recommended small cap mutual fund schemes. We are happy to inform you that there are no changes in the recommendation ...
Fund managers raised stake in 194 stocks in Dec quarter. Is it a good idea to follow them?  Moneycontrol.comFund managers raised stake in as many as 194 companies in the December quarter as compared to the previous quarter. Stocks of some these companies have ...
These stocks see mutual fund inflows for 8th straight quarter; are they worth a look?  Economic TimesAt least 20 listed stocks on the BSE have been major beneficiaries.
Quant-based mutual fund schemes are coming. Should you invest?  Economic TimesMany mutual fund advisors believe quant-based mutual funds are the future of the Indian mutual fund industry.
Top mutual funds still have Rs 8,650 crore exposure to DHFL & four group entities  Economic TimesAs skeletons tumble out one after another from the closets of highly leveraged companies, domestic mutual funds with exposure to such entities are finding ...
Can a US citizen invest in mutual funds in India?  Economic TimesYes, a US citizen can invest in mutual funds and other financial products such as NRI fixed deposits, stocks and more, subject to prescribed regulations.
MFs bought select IT, bank stocks in Jan ahead of Budget, May polls  Economic TimesNEW DELHI: Mutual funds were seen churning their portfolios in information technology, consumption and private banking sectors during the month gone by, ...

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