Pathways

During our travel down life's path we come to many places where the trail divides and we must make a decision. Some involve psychological (emotional) choices ? marriage, divorce, leaving home, career changes, etc. Others are monetary ? buying a new car, home, starting your own business, investing, etc. Many are interwoven having aspects of both psychological and monetary.

The marriage decision means you have decided to live and share everything with a partner and also support that partner in every way including financial.

Investing in anything is at first mostly financial, but as you accumulate a larger and larger amount it begins to have a grip on your emotions. Greed and fear are the two great motivators in the investment community. Everyone wants to buy that $1.00 stock that goes up to $200 per share. Unfortunately, for most, the pot of gold remains at the end of the rainbow. As the years pass by and your investments become larger and larger fear of loss creeps into the subconscious. No one wants to lose.

During the past 3 years we have seen many people lose a great deal of their stock market investments. Both fear and greed have taken their toll. Wall Street has not taught you how to prevent loss and they never will. Until you have experienced losses you go along with the program and too late you realize there must be a better way, another path. Once you have found it you now have the decision to break away from old conventional wisdom. You realize that you have been following the wrong path.

Wall Street's maxims of Buy and Hold, Do Research and Dollar Cost Average have been and still are false. Once you have come to this understanding you will be on the road to successful investing. You will have taken the right turn on the path.

Losing money is not only a financial hardship but also a psychological burden. No one likes to be wrong, but hear this bit of advice about the stock market. It is OK to lose a small amount, but never OK to lose a large amount. Protection of your capital is of prime importance.

Whenever you buy a stock or mutual fund your first consideration should be how much am I willing to lose if it goes down instead of up? You can set that parameter at 5% to 20% of your investment. For stocks you can have the broker put in a permanent stop loss order, but for mutual funds you must set the price and make the call to tell the broker to sell you out. You are on the right path because you are in control. If you do sell with a 10% loss remember you now have 90% of your money remaining so you can find a more profitable vehicle. Ask around to find out how many of your friends now wish they had had one of those stop orders in place during the past 3 years.

The secret pathway to success in the stock market is selling, not buying.

Al Thomas

Author of "If It Doesn't Go Up, Don't Buy It!"

Never lose money in the stock market again.

http://www.mutualfundmagic.com

In The News:

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 ...
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 ...
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.
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 ...
Which cap fits best? Mutual Funds  India TodayEquity markets have, over the past two months, seen significant correction. Their bellwether index, the S&P BSE Sensex, has corrected around 10 per cent (as ...
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 ...
Diversify your portfolio by investing a portion in US-focused mutual funds  MoneycontrolDeveloped markets such as US have delivered significant returns over market cycles.
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.
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.
Fund managers bet over Rs 8.5K crore on these 6 stocks in July; do you own any?  MoneycontrolFund managers added large-cap private banks, utilities, energy and select FMCG names.
Stocks in the news: Igarashi Motors, Glenmark Pharma, Alkem Labs, Lupin and Future Retail  Economic TimesFidelity Investment Trust offloaded over 1.91 crore shares of LIC Housing worth nearly Rs 821 crore.
MFs, FIIs bought these 16 stocks consistently in last 1yr; what should you do?  MoneycontrolThe market has tanked since the budget on July 5. Investors have lost about Rs 12 lakh crore in terms of market capitalisation on the BSE since then. The freefall ...
Hot and Cold Stocks of Mutual Funds in July 2019  MoneylifeIn July 2019, IndusInd Bank and ICICI Bank were the most preferred stocks of Indian mutual funds.
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 ...
Tech Stocks Help This T. Rowe Price Mutual Fund Excel  Investor's Business DailyT. Rowe Price mutual fund manager Josh Spencer has tough shoes to fill. Tech stocks, especially software stocks, help him reach his goal.
How much corpus will these mutual funds help me to create in 10-15 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.
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 ...
Low hanging fruits? Stocks top money managers bought all through jittery July  Economic TimesAsset under management of the mutual fund industry inched higher to Rs 24.53 lakh crore in July despite a harsh selloff in the domestic equity market, data from ...
Step up your SIPs in these mutual funds to benefit from the market correction  LivemintAn SIP will automatically accumulate more units in corrections such as the present one.If you wish to cautiously take advantage of the market correction, stick to ...
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 ...
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 ...
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 ...
Comcast, Visa and Other Top Stocks Mutual Funds Favor (NASDAQ: CMCSA) (NYSE: V)  24/7 Wall St.These top stocks should come as no surprise as they make sense, being huge, dominating much of their specific business lines, being very liquid and looking to ...
Charticle: Top stocks that FPIs, MFs bought and sold during June quarter  Business StandardEquity markets witnessed some sharp upmove in the first half of the calendar year 2019 (CY19), first on the anticipation of the return of the Narendra Modi-led ...
Mutual Funds: To stay invested or exit? Check these four points first  The Financial ExpressThe BSE Sensex is trading lower compared to the 1-year-ago and 3-months-ago levels, while it is flat compared to its level 6 months ago. In the past one year, ...
70% of SIP flows coming into our mid, smallcap funds: Sunil Subramaniam  Economic TimesThe industry has also done a good job of marketing the fact that in times of stock market correction, all SIP instalments are going to be the multibagger SIP ...
Even in a tough year, two in every three midcap funds beat the benchmark  Economic TimesIn a tough year for midcap stocks, when the S&P BSE Midcap Index lost 11 per cent, mid-cap funds fared pretty well, with 14 out of 21 mid-cap funds staying ...
India is still a stock picker’s market, but investment horizon should be 5 years  MoneycontrolIndia is still a stock picker's market and there is scope for active management, and for fund managers to deliver alpha over the long term. says Sampath Reddy.
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 ...
The Mutual Fund Show: Is It Time To Buy Small And Mid Caps?  BloombergQuintDoes the correction in the broader market provide an opportunity to invest in mid- and small-cap funds? That's a question on everyone's mind right now. But with ...
Investors Are Usually Wrong. I’m One of Them.  The New York TimesForget about getting everything right. Most people are so consistently wrong that merely avoiding major errors is enough to set you apart from the pack. That is ...
ITI Mutual Fund mulls slew of scheme launches in next few months  MoneycontrolThe fund house which began its operations with the launch of ITI Liquid Fund and ITI Multicap Fund in April 2019 and ITI Long Term Equity Fund in July 2019 is ...
10 mutual fund houses hold bulk of Yes Bank's riskier bonds: Report  MoneycontrolIndia's financial sector continues to boil over as industry data showed that as of June 2019, 10 mutual fund companies held as much as Rs 3,294 crore worth of ...
4 Invesco Mutual Funds for Spectacular Gains  NasdaqFounded in 1978, Invesco Ltd had preliminary assets under management of $1198.7 billion as of Jul 31, 2019. With nearly 750 investment professionals.
Slowing Share Buybacks Remove a Pillar of Stock Market  The Wall Street JournalU.S. corporations are repurchasing their own shares at the slowest pace in 18 months, a potential sign of more volatility as the buyback bonanza from the ...
3 Funds to Benefit From Robust Home Sales  NasdaqPer the lates t report from the National Association of Realtors, existing home sales in the month of July increased more than estimated. The metric.
The Mutual Fund Show: Crisil's Ranking Of The Best Schemes After June Quarter  BloombergQuintMutual fund houses managed more money in the quarter ended June as investors turned upbeat after Prime Minister Narendra Modi returned to power with an ...
Explained: What is mutual fund NFO?  LivemintIn an NFO, you can subscribe to the units of the new fund, which is being launched, at an offer price which is usually set as ₹10.After the NFO, an open-ended ...
Is Dodge & Cox Stock Fund (DODGX) a Strong Mutual Fund Pick Right Now?  Yahoo FinanceLooking for a Large Cap Value fund? You may want to consider Dodge & Cox Stock Fund (DODGX) as a possible option. DODGX carries a Zacks Mutual Fund ...
Dow Jones Dives 550 Points As Microsoft Faces This Key Sell Signal  Investor's Business DailyThe Dow Jones Industrial Average dropped as much as 550 points, or more than 2%, as Wall Street braced for potential moves by the White House to punish ...
8 of the Best Investments During an Economic Slowdown | Portfolio Management  U.S News & World Report MoneyThe stock market is jittery over worries about an economic slowdown, and August's inverted yield curve added to those concerns. The stock market's bull run is at ...
Top 5 ELSS funds to invest in to get better returns  The Financial ExpressTo avoid duplication, choose ELSS schemes with varying portfolio allocations across different sectors, market capitalisation and stock holdings.
Is Vanguard 500 Index Investor (VFINX) a Strong Mutual Fund Pick Right Now?  Yahoo FinanceAny investors who are searching for Index funds should take a look at Vanguard 500 Index Investor (VFINX). While this fund is not tracked by the Zacks Mutual ...
Can This New Hawaii Venture Become The Stock Fund For Millennials?  Honolulu Civil BeatA Colorado portfolio manager has big plans for a $44 million S&P 500 index fund that he has brought to Hawaii.
An easy solution to RESP investing, 10 TSX dividend stocks with earnings momentum, and the bond market bubble  The Globe and MailParents, here's a task to add to your back to school to-do list: Check the registered education savings plan you set up for your children's college or university ...
We Rank the Online Brokers  Kiplinger's Personal FinanceNo broker can hit the bull's-eye for every type of client. Use our results to find the best one for you.
​Pattie Lovett-Reid: How to get the most bang for your TFSA buck  BNNBloomberg.caThe TFSA, or tax-free savings account, has been around for a decade, but that doesn't mean we are using them to get the biggest bang for our buck. A recent ...
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 ...
Best Online Brokers, 2019  Kiplinger's Personal FinanceOur 2019 online broker ranking recognizes that no brokerage can hit the bull's-eye for every type of client, but we'll help you find the best one for you.
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 ...
The Taxman Says, Stay Invested  Morningstar.comTiming the stock market is difficult enough, even without the IRS' contribution.
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.
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.
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.
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 ...
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 ...
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 top three mutual funds bought and sold in March  Economic TimesIndias largest money manager held 1.5 trillion rupees in equities.
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 ...
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 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.
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 ...
Govt increases limit to disclose investment in stocks, mutual funds for employees  Moneycontrol.com*Service* rules say no government servant shall speculate in any stock, share or other investment.
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 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 ...
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.
Are you thinking of investing in small and mid cap mutual funds? Here is some advice from fund managers  Economic TimesMutual fund investors have started flocking to mid cap and small cap schemes once again. According to AMFI data released on Monday, the mid cap mutual fund ...
All you need to know about liquid mutual funds  Economic TimesThe NBFC crisis has brought liquid funds back in favour as they carry lower risk than corporate FDs.
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 ...
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 ...
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 ...
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 ...
MF portfolio doctor: Babji needs to exit direct investments in stocks, take mutual funds route  Economic TimesThe Portfolio Doctor assesses the health of the fund portfolio, examines the schemes and their suitability with regard to the goals.
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 ...
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 ...
Investment limits Sebi prescribes for mutual funds  LivemintIn case of unrated debt instruments, a mutual fund cannot invest more than 10% of the portfolio in a single issuer and 25% in all such securities.In case of listed ...
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.
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 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 ...
What to do if your mutual fund scheme earns more return than your investment  Economic TimesAre the returns shown in your mutual fund account statement same as the returns delivered by your fund? It is quite likely that you might have earned less than ...
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.
Equity funds record highest ever exposure in banking stocks in March 2019  Business TodayAs per the latest data available from the SEBI, overall deployment of equity funds in bank stocks grew around 52 per cent year-on-year (y-o-y) in the month ...
What India's top three mutual funds bought and sold in February  LivemintStock funds took in a net ₹5130 crore, a 17% drop over January, data from the Association of Mutual Funds in India show .Here's what the top three asset ...
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 ...
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.
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.
Top 8 most common mutual fund investing mistakes and how to avoid them  Business StandardMutual funds, especially equity mutual funds, have played a pivotal role in helping retail investors create wealth over the last 25 years since they actually ...
Active mutual funds fail to reflect index gains  Economic TimesThe Nifty, which has hit all-time highs for the second time in April, has advanced 12% in the last one year. But these gains are yet to reflect in many mutual funds' ...
A look at mistakes committed by investors of equity mutual fund schemes  Moneycontrol.comBalwant Jain. The interest of investors has been shifting from direct equity investing to equity mutual funds over a few years. Though this is a welcome trend, ...
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.
Defaults, downgrades hit debt mutual funds: What investors should know and do now  Economic TimesAs debt mutual funds land in trouble following multiple defaults and downgrades by bond issuers, ET Wealth addresses some key questions from worried ...
I want to invest Rs 1 crore in stocks and mutual funds for 5 years. How should I invest?  Economic TimesYou may consider the following asset allocation: 40% in large-caps; 40% in large and mid-cap, or multi-caps; and remaining 20% in mid- and small-cap funds.
Should you invest in mid- and small-cap funds now?  LivemintWith the new government taking office with a massive majority, it has the elbow room to push through the reforms. No wonder markets are expecting the ...
Here’s a better tool to judge mutual fund performance than simple 1-year, 3-year returns  Economic TimesOne invests in mutual funds to earn potentially higher returns than those in traditional investment products, and I'm sure everyone looks at the one-year, ...
Mutual fund Industry adds 529,633 folios in June: Herere the details  Business StandardThe mutual fund (MF) industry saw 529,633 of new folios getting added in June, which took the total industry tally to 83.8 million folios. Folio numbers are linked ...
Stop! Too many stocks, mutual funds are not good for you; Buying too many may not get you more  The Financial ExpressHandling the overall risk of investments is crucial, but not at the cost of not meeting your financial goals. Over-diversification can do this.
Sebi allows mutual funds in exchange traded commodity derivatives  Economic TimesNEW DELHI: The Securities and Exchange Board of India (Sebi) on Tuesday allowed mutual funds to participate in exchange-traded commodity derivatives ...
Spending time in stock market is must for wealth creation: Chandresh K Nigam, Axis Mutual Fund  Economic TimesInvestors make the mistake of projecting recent market performance onto the future and follow the market.
Are you looking for profits or to create wealth from mutual funds?  Economic TimesBy Ashish Modani I give you two mutual fund schemes to choose from – Scheme A and Scheme B. Scheme A has given stellar returns over a 15-year period.
The best, safe mutual funds to invest for 15 years  Economic TimesI am 29 years old. I want to start an SIP of Rs 20,000 in mutual funds for a period of 12 to 15 years. Please suggest me the best and safe mutual funds? My target ...

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