Your Questions About Investing In Mutual Funds

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William asks…

is the mutual funds best for investing?

in which company i can invest the mutual funds which will lead higher rate of returns please suggest ?

financi4 answers:

You can invest in stocks, you can invest in bonds, you can invest in Treasury bills, you can invest in real estate, but in the end your resources will limit you to one or maybe two securities which increases your risk to about the level of going to the local casino or buying a lottery ticket. The reason Mutual Funds are so popular is because they decrease the risk and increase the probability of enjoying high returns.

Following are the top five big benefits of investing in Mutual Funds.

1.)The Advantage of Professional Investment Management.
3.)Low Cost, High Quality Investing
4.)Convenience and Flexibility.
5.)Mutual Fund Investments are Liquid and Easy to Withdraw

As with any investment, there are risks involved in buying mutual funds. These investment vehicles can experience market fluctuations and sometimes provide returns below the overall market. Also, the advantages gained from mutual funds are not free: many of them carry loads, annual expense fees and penalties for early withdrawal.

John asks…

how to start investing in mutual funds ?

I’m starting right from the scratch …soo can use all the right information.

financi4 answers:

If you are a new investor it is better to start your investment in mutual funds through SIP (systematic investment plan). SIP is a smart monthly nominal investment which starts with Rs. 500 in multiples of Rs. 500. This becomes easier for a new entrant to invest in stocks indirectly havinf the resonable good returns in a long term.
For any queries you can leave the query on

David asks…

I need advice on Investing in Mutual Funds?

Any success stories from anyone out there? Any advice also would be great.

financi4 answers:

I started investing in mutual funds when I was 16. I mowed lawns and worked odd jobs. I put $2,500 in my investment account every year until I graduated college.

When I got a full time position, I began contributing in my companies 401(k) plan instead of my individual retirement plan. I kept the same philosophy of choosing good quality long term investments.

Within 12 years, I have grown my money to over 6 figures. Whether the market goes up or down I always invest more each month. I know many of people that panicked when the market went down. They pulled their money out and missed out when the market went back up. Don’t do that. Stay invested and stay consistent.

Best investments in mutual funds are with the American Funds. Check them out at (they are the largest manager of US and Global investments).

Chris asks…

Mutual Funds / Investing Question, Please Assist?

I have a range of money market accounts, Savings accounts, Bonds, etc… looking now to begin in the area of mutual funds. I’m looking a good, fully serviced, mutual fund that will be geared toward aggressive growth, with a minimun initial investment of about $1,000. Morningstar **** or ***** would be preferred. Looking help to find specific funds, not just companies that offer them. Any success stories welcome, any warnings/advice to what not to do is apprieciated as well. Thank you for your help, please answer sincerely.
haha, by the lack of answers ill just assume im asking for to many specifics… if you know of ANY specific good mutual funds or want to share bad ones id appreiciate it.
additionally, being new to the mutual fund market, when i see 1,5,10 year %’s of growth, is that referencing the average yearly return for that period of time?

financi4 answers:

I like Legg Mason Partners Funds (formerly called Smith Barney). I invest in LMP Aggressive Growth, LMP Fundamental Value, and LMP Appreciation Fund. These are known as “3 Fund Approach.” Why? Just like you don’t want to invest all your money into one stock, you don’t want to invest your money all in one mutual fund (even though it invests 25 to 300 different companies). How you want to diversify your money is up to you, but I put about 33% into all.

My dealer is PFS Investments and they don’t charge any fees to use their services. You can buy or redeem your shares online. You can check the value of your portfolio anytime online too. Oh yeah, make sure the agent is properly licensed and ask about the complimentary financial need analysis (a very useful financial tool).

Anyway, no matter how you invest, don’t pull out if the stock market crashes because you know stock market will always rebound (base on past performance).

Ken asks…

How safe is it to contnue investing in Mutual Funds and ULIP plans at this point of time?

financi4 answers:

In my opinion it is a good time to buy more especially if the averages continue to fall a bit more. Stocks are on sale and the markets will rebound. Historically there has never been a 30 year period (even through the crash of 1929) that the markets have not returned an 8% average. Just remember to diversify your holdings and you will be fine. Expect to be in for the long haul and you will reap rewards.

Steven asks…

Help determining the right mutual funds and risk for my situation?

I am planning to begin investing in mutual funds. Most likely I will open a Roth IRA and invest to the max annually. Then just invest in funds themselves. I’m 42 years old and am generally conservative. I can handle some market fluctuation but I do not want to lose my savings being too aggressive. I’ve chosen to start with the Roth for retirment but with the flexibility to take out money invested in an emergency. What tools do you suggest to narrow down the options?

financi4 answers:

I like the fund picks from Fidelity as a tool to find mutual funds.
There are funds called balanced funds. In my book they are ok. My pick in this area is the James golden balanced rainbow fund. Given your risk tolerance they may be right for you. The other option for you is to develop an asset allocation, where you have a percentage in bonds and stock mutual funds.

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