The Surgeon General

The Surgeon General of the United States says that smoking cigarettes is harmful to your health. It is printed on every pack of smokes you buy. When was the last time a smoker read or paid any attention to it?

Don't you wish your brokerage account had some kind of warning telling you when to sell out of a stock or mutual fund that is going down? How about "If this stock falls more than 12% below its highest closing price the Money General says it should be sold and the money reinvested in a different equity"? Think of what that would have done for your financial health during the past 2 years. Most people would be feeling a lot better.

Your broker is supposed to be a doctor of finance and should be concerned about your financial well being. When you ask him why your portfolio has gone down you probably will get one of two answers ? "Don't worry, the market always comes back" ? except when it doesn't. And "Buy and hold is the best strategy when you are in for the long haul". That long haul may be 20 years to break "even". Of course, that does not make you feel any better when you see your money disappearing. It all comes down to the fact he does not know how to do this and has not been trained by the brokerage company. The same goes for most financial planners.

Financial planners will tell you how to split up your investment among stocks, bonds, mutual funds, real estate and so forth, but they have no idea when to sell out of a losing position. Neither brokers, bankers nor financial planners have ever heard that cash is a position. Yes, cash in a money market account will not make big returns, but it will protect your money while the stock market is in a general slide down. Think about this: what if your money had been in a simple 3% money market account for the past 2 years. Would you have more money today? Probably.

It is very difficult to find a broker who has any training in protecting your assets. If you ask to see the training manuals for brokers you will find two. One concentrates on learning all the rules and regulations of the Securities and Exchange Commission so they will not be sued and the other is a Sales Manual on how to open new accounts and get investors to put in more money. No instruction on how to protect the investors money when a stock or fund starts down. The one thing they are never taught is when to sell.

If you expect to have financial health you must learn how to wisely invest your money. There is no Money General or Easter bunny. You cannot rely on any "expert". Just as you are responsible for the health of your body by what you put into it so your financial health is up to you by making sure you do not lose what you are putting away for your retirement.

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:

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Investment limits Sebi prescribes for mutual funds  LivemintDid you know that there are guard rails that the Securities and Exchange Board of India (Sebi) has put in place to protect you from the risks of over-exposure to a ...
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Why investors should consider buying stock in the fund company, not the fund  MarketWatchThese investing and stock-market stories offer tips and ideas about what to watch for — and watch out for — when it comes to your money.
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Tax saving: Here are Dhirendra Kumar’s 4 favourite ELSS funds  Economic TimesThe long-term nature of such investments can well turn out to be a huge retirement corpus, if this is the only investment that you make, said Dhirendra Kumar, ...
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From best to worst, India's stock market sets off alarm bells  Economic TimesIndia has wiped out $113 billion this year after winning the regional equity crown in 2018.
Investor rush for high dividend yield stocks lifts Bharat 22 ETF returns  Economic TimesMany of the cash-rich PSU stocks that are part of Bharat 22 are high dividend yield companies.
The Mutual Fund Show: Why Nimesh Shah Has A Boring Portfolio  BloombergQuintFor Nimesh Shah, this is the season for “boring portfolios”—not chasing spectacular returns but picking stocks that are less volatile.
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How to Evaluate Funds that Invest in Women  U.S. News & World ReportInvesting in mutual funds and exchange-traded funds that promote environmental, social and governance policies allows people to try and align their ...
Stocks in the news: Bharti Airtel, DHFL, ABB India, Jet Airways, Infosys, Forbes & Company  Moneycontrol.comJet Airways | Infosys | Forbes & Company | Rossell India | Metalyst Forgings and National Steel are stocks which are in the news today.
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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 ...
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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.
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.
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 ...
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 ...
New stock ideas boost equity mutual fund portfolios  LivemintThe sharp spurt in assets under management (AUM) in mutual funds in recent years appears to have compelled fund managers to venture out of their comfort ...
Stock Review: Investors Taking a Second Look at NovoCure Limited (NASDAQ:NVCR) After Recent Market Moves  The Coin GuildMajor market players are buzzing over NovoCure Limited (NASDAQ:NVCR) as their share price hit $50 at the end of the most recent trading session.
Mutual funds garner over Rs 65,000 crore in Jan  Economic TimesMUMBAI: The mutual fund industry added assets worth Rs 65,439 crore in January 2019, taking total assets under management to Rs 23.37 lakh crore.
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.
Is it a good time to invest in small-cap mutual fund schemes?  Economic TimesBears have taken control of the small and mid-cap territories in the stock markets. The Nifty Smallcap100 index has plunged nearly 27% this year, after a 3-4 ...
Does it make sense to invest in mutual funds when the markets are down?  Economic TimesI am looking to invest Rs 20,000 per month via SIP in mutual funds for an investment period of more than 20 years. The idea is to maximize wealth to use for my ...
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 ...
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 ...
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.
27-year-old rule changed: Disclosure limit on MF, stock investment up for bureaucrats  Economic TimesGroup A and B officials had to intimate government if total transaction in shares or MFs exceeded Rs 50K.
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 ...
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 ...
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.
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.
Hot and Cold Stocks of Mutual Funds in January 2019  MoneylifeIn January 2019, Axis Bank and HDFC Bank were the most preferred stocks of Indian mutual funds.
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.
Flows to India equity mutual funds smallest in 23 months as demand cool  LivemintMumbai: Flows into Indian equity mutual funds in December were the smallest in almost two years as increased market volatility and political uncertainty cooled ...
Is your mutual fund buying or selling stocks too much?  LivemintA mutual fund scheme's turnover ratio tells you how frequently its fund manager buys and sells the underlying stocks. Typically, higher the turnover ratio, more ...
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.
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 ...
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 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.​
Fund managers raised stake in 194 stocks in Dec quarter. Is it a good idea to follow them?  Moneycontrol.comif good or quality stocks are getting hampered with external factors, investors should use the dips to buy into stocks which they think hold long term growth ...
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 ...
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 ...
Tata Motors stock crash: Over 200 mutual fund schemes own equity worth Rs 4,000 cr  Moneycontrol.comIn terms of value, more than Rs 4000 crore of mutual fund money is riding on Tata Motors, and approximately Rs 1700 crore in Tata Motors DVR.
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.
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 ...
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 ...
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.
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 ...
At least 100 MF schemes own these stocks; that should mean something, right?  Economic TimesDomestic institutional investors have become one of the key market drivers in recent years.
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.
Why the $35,000 RRSP Home Buyers’ Plan won’t be much help  MoneySenseIt's been about a week since federal budget day and I still have questions about some of the things the government announced. For instance, why did they ...
Canara Robeco MF expects no euphoria before elections; recovery likely in mid & small-cap stocks  Moneycontrol.comNimesh Chandan, Head-Investments (Equities) at Canara Robeco Mutual Fund shares his outlook on markets in an election year and how earnings will drive ...
Mutual funds raise stake in equities to highest-ever level; prefer financials, consumer stocks  Moneycontrol.comDomestic mutual funds (DMFs), the largest buyers of Indian stocks during the quarter, also added the most positions in ICICI Bank and Axis Bank, and reduced ...
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.
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.
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 ...
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.
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.
Best value-oriented equity mutual funds to invest in 2019  Economic TimesValue investing is an investment strategy that looks to buy stocks that are trading below their intrinsic value.
Five stocks that mutual funds think can outperform  Economic TimesA volatile month gave fund managers a chance to cherry-pick stocks.
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, ...
New to stocks? Try aggressive hybrid funds: Dhirendra Kumar  Economic TimesThe promise of a small cap is that they turn out to be a bonanza when they become a midcap or large cap, says Dhirendra Kumar, CEO, Value Research.
Investing in equity mutual funds versus investing in shares: Which is better?  Economic TimesThe final goal for all stock investors is the same: to get superior returns. However, in terms of what you do, there are two completely different routes.
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 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 ...
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.

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