I Love To Lose Money

Well, not really. What I mean is I don't mind losing a small amount when I have to sell a stock or mutual fund that is going down or taking away the profit I have made. During this past 3 years I have made money each year because I was not afraid to sell. The great secret that Wall Street does not want investors to know is all about selling, not buying.

The recent headlines scream"10 Stocks To Buy Now", "100 Best Mutual Funds For 2003", "Make 25% With These Safe Stocks" and "Now Is The Time To Buy". All are either stupidity or wishful thinking. Brokers and financial planners don't want you to find out that they don't know either so they come up with great stories about the equities they recommend. Unfortunately, when the stock or fund heads down it becomes one of those buy and hold situations and they tell you that you are "in for the long haul" and "the market always comes back". I hope that by now you have learned this is not true.

When there is a secular bear market, as I believe we are in now, it could be many years before we get back to "even". Last year 96% of all stock equity mutual funds lost money and the average fund lost 21%. These are times when the only safe place for money is in cash ? a money market account. For the previous 3 years money in your mattress outperformed the stock market by 40% and for lots of folks much more. Here is one your broker will not tell you ? Cash Is A Position.

The first thing you must learn about investing is how to protect yourself from losses. I mean big losses. When I was a floor trader on the exchange I lost on about 40% of my trades, but I never lost much. I came to love those little losses because I still had almost all my money available to find a better position. One that would make money.

Almost all of the magazine writers, talking heads and brokerage analysts are professional losers. It is easy to prove because they never tell you where to sell what they are telling you to buy. If you don't go in with a plan to protect your money it is like a general who goes into battle with no plan for retreat should he find he couldn't win the battle. One of the simplest money savers is the 10% stop. It you buy a stock or no-load mutual fund you should not take more than a 10% loss. This will leave you with 90% of your money that could find a real winner. The small losses will never break you. It is sitting with a loss that gets bigger and bigger and bigger is the one that will ruin you.

Learning to love the little losses will make you rich.

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:

Stick to largecaps, buy financials, consumption stocks on dips: Jinesh Gopani, Axis Mutual Fund  Economic TimesStick to the few stories which are growing and be careful on the portfolio, says Gopani.
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 ...
What India's top three mutual funds bought and sold in March  Economic TimesIndias largest money manager held 1.5 trillion rupees in equities.
Mirae Asset launches its first equity focused mutual fund  LivemintMirae Asset Focused Fund, an open-ended equity scheme, will be investing in a maximum of 30 stocks.The fund manager has the flexibility to invest across ...
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' ...
Investing In Stocks: How Best Mutual Funds Help Spot The Best Stocks  Investor's Business DailyLooking for the best stocks to buy and watch? Start be seeing if the stock you're watching are owned by the leading funds in IBD Mutual Fund Index.
IT, bank stocks in focus as MFs raise stake in 185 companies in March quarter  Moneycontrol.comFund managers were net buyers in Indian equity market purchasing shares worth Rs 1000 crore in the January-March period.
What do politicians invest in? Here's a look at the portfolios of 8  Economic TimesDo they invest in real estate, stocks or FDs? How much is their net worth? Heres a look at the investing skills of eight candidates contesting the 2019 Lok Sabha ...
Principal Mutual Fund launches small cap fund; offer to close May 6  Moneycontrol.comPrincipal Mutual Fund on April 22 launched an open-ended scheme predominantly investing in small-cap stocks, Principal Small Cap Fund, according to a press ...
Relief for investors as mutual funds chose SpiceJet, IndiGo over Jet Airways  LivemintMumbai: As Jet Airways (India) Ltd moves from flight cancellations to a complete halt, mutual funds stand relatively well-positioned. Few mutual fund schemes ...
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 ...
Birla MF looks to parachute out of Jet Airways crashing stock  Business StandardBirla Sun Life Mutual Fund (MF) — the only fund house holding Jet Airways shares in its actively managed schemes — off-loaded Rs 13 crore worth of shares in ...
BJP’s Amit Shah has diversified stock investment portfolio; Rahul Gandhi prefers mutual funds  Economic TimesShah held shares worth Rs 17.56 cr as of March 22, while Gandhi has MFs worth Rs 5.19 cr.
Mutual funds sell several blue chips stocks, buy mid-caps in March  Business StandardDomestic money managers were seen pruning their holdings in several blue-chip stocks, including Reliance Industries (RIL) and Housing Development Finance ...
Retail steadily increased holdings in Jet Airways even as institutions sold  LivemintAt the end of March 2019 the retail investors had increased their stake in the troubled airline to 11.42% from 4.9%.The behaviour of institutional investors has ...
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 ...
Top 30 stocks that fund managers bought & sold in March; do you own any?  Moneycontrol.comTop 30 stocks which witnessed strong buying according to change in value include names like NTPC, ICICI Prudential, L&T, SBI Life, SBI, Jubilant Food, Maruti, ...
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.
Flows to equity mutual funds rebound as rally spurs risk appetite  Economic TimesStock funds took in about 118 billion rupees ($1.7 billion), the highest since October.
What is Smallcase? Should you invest in stocks via these?  Economic TimesOne invests in the market either by buying individual stocks through a broker or by putting money in equity funds or exchange traded funds. Brokerages are now ...
Homegrown MFs pip foreign funds to bag top slots in India  Economic TimesLarge homegrown mutual funds have pipped some longtime foreign funds as the top institutional investors in the Indian stock market. Out of the top five ...
Common investment mistakes to avoid  LivemintRemember, time in the market is key, so don't get affected by volatile conditions.Here are some common mistakes you should avoid while investing.
Closing Bell: Nifty ends below 11,600, Sensex falls 495 pts; IT stocks gain  Moneycontrol.comThe Sensex was down 495.10 points at 38645.18, while Nifty was down 158.30 points at 11594.50.
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.
Here's what millennials can do to make money from equity market  Moneycontrol.comDirect equities may not be the best option for those who are starting out; stick to mutual funds' systematic investment plans.
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.
Growth Stock Mutual Funds Racked Up Impressive Returns In Q1 On Easy Fed And Better Data  Investor's Business DailyLarge-cap growth stock mutual funds had the upper hand among the top-performing stock funds in March, rising 2.43%. Midcap growth funds led in Q1 with a ...
Explainer |Total return index: How does it impact you as a mutual fund investor  Moneycontrol.comIt makes the job a bit more difficult for the fund manager as TRI is a higher benchmark as against the price index.
3 Top Dimensional Mutual Funds to Buy Right Now  NasdaqDimensional Fund Advisor offers investment solutions from different asset classes to institutional and individual investors, investment consultants.
Mirae Asset India Equity Fund to be reclassified as large cap - What should investors do?  LivemintMirae Asset's flagship equity scheme, the ₹10,560-crore Mirae Asset India Equity fund is being reclassified from multi-cap to large-cap and will be known as ...
Consumer Stocks Could Be Good Bet Against Mutual Fund Crowd, Strategist Says  Barron'sGoing against the wisdom of the crowd, Savita Subramanian tells investors to build up sectors that haven't attracted as much hedge and mutual fund interest.
The Mutual Fund Show: How To Approach Multi-Cap Funds  BloombergQuintMulti-cap schemes, or diversified equity funds, have the flexibility to invest in stocks across market capitalisation. This lowers the amount of risk in the fund and ...
75% midcap, smallcap funds outperformed their benchmarks in 2018  Economic TimesDespite broader market facing challenging environment in 2018, around 75 per cent actively managed midcap and smallcap equity funds outpaced their ...
Money management advice: Top-ranked advisor details big strategy shift  Business InsiderRebecca Rothstein, who manages $3.8 billion for ultrarich investors, says her firm made a huge shift toward exchange-traded funds in the past year.
This Rs 3.50 lakh crore fund manager picked PSBs, hotel stocks in March  Economic TimesNPTC and Bank of Baroda were among the top buys of the fund house.
What to do when saving enough money to retire demands drastic action  MarketWatchIf you're older and don't yet have enough to retire, it's time to get real.
Paytm Money Gets Approval For Stock Trading; Will This App Disrupt $2.3 Trillion Stock Market?  Trak.inPaytm Money has got the approval from SEBI to launch stock market trading on its platform; Mutual funds is already sold via Paytm Money.
Only regret is dropping the original name - Mirae Asset India Equity Fund: Swarup Mohanty  Economic TimesMirae Asset AMC is changing the basic character of its popular multi cap scheme -- Mirae Asset India Equity Fund. The scheme will be converted into a large cap ...
Stock trades, earnings season: 5 options recommendations from Goldman  Business InsiderStock-market price swings have been subdued leading up to earnings season, but Goldman Sachs has still identified a handful of mispriced market ...
7 No-Load Mutual Funds to Buy  Investorplace.comA mutual fund load is real nuisance because it goes to compensate a middleman These no-load mutual funds let you keep more of your money.
How Retirees Should Invest at a Time of Low Interest Rates  Wall Street JournalBy gradually lifting short-term interest rates, the Federal Reserve has made it easier for retirees to get steady investment income while taking less market risk.
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.
‘How is this possible?’ Analysts puzzle over stock market’s rally amid equity-fund exodus  MarketWatchU.S. stocks at the end of March posted their best quarter in nearly a decade, but they did so without help from investors in U.S. stock mutual funds and ...
Julie Jason: Mapping out a road to retirement  The Mercury NewsJulie Jason: Mapping out a road to retirement. Investing in retirement is a lot different from buying stocks and bonds and mutual funds when you are in your 30s ...
4 Top BlackRock Mutual Funds for Striking Gains  Zacks.comBelow we share with you four top-ranked BlackRock funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy)
Goldman Sachs ETF chief breaks down new investment trend  CNBCExchange-traded funds are getting a revamp at Goldman Sachs. The big bank has doubled down on a concept called smart beta, which blends passive and ...
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.
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 ...
7 Retirement Rules to Live By  The Motley FoolTake these rules to heart and act on them to make your retirement much more comfortable and secure.
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
What India’s top three mutual funds bought and sold in February  BusinessLineInflows into Indian equity mutual funds in February were the smallest in more than two years as savers held back investments amid market volatility and ...
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.
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 ...
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 ...
Why your core equity portfolio should be in index mutual funds  Economic TimesInvestors flock to the performing fund “after” it has beaten the index. Fund selection is not an exact science, and there will be hits and misses.
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 ...
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?
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.
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.
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 ...
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 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.
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.
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 ...
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.
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 ...
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 ...
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.
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.
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.
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.​
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.
Mutual fund houses push sell button on auto and construction sectors  BusinessLineBut stock up on IT scrips amid redemption pressure.
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 ...
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 ...
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.
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.
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 ...
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 ...
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.
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.
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 ...
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, ...
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.
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.

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