Most mutual fund shareholders, for instance, are still avoiding any high-risk investments in their mutual fund portfolios.
Three things matter in the selection of a mutual fund: Cost, risk and performance.
Mutual funds publish information about risk, including the beta, on their fund fact sheets.
One that sets everyone up to go forward with more self-esteem, less overall risk, and mutual reputations intact.
FORBES: Five Simple Ways to Fire Someone Without Losing Sleep Over It
The answer is, overwhelmingly, insurance companies peddling high-cost, tax-deferred variable annuities with crappy proprietary mutual fund options and high-risk fixed accounts.
FORBES: With Pensions At Risk, Government Workers Must Demand Better 457 and 403(b) Retirement Plans
In June, India and Pakistan had their first-ever talks aimed at building mutual trust that could reduce the risk of nuclear conflict.
The retirement security of several generations of Americans is put at risk by the unsavory mutual fund industry practices that the current regulatory framework permits.
FORBES: Early Warnings of Mutual Fund Illegalities (October 1, 2003 )
In these cases, the ETF becomes riskier than the index it tracks and a lack of commission may not be enough to justify the additional risk over buying a mutual fund that tracks the same index.
Also, there is some additional market risk between the time the mutual funds are sold and when the proceeds are reinvested.
Typically mutual funds is where we are looking at quite substantially right now for really one reason, and those tend to trend better with a lot less risk, so you know you can have market-like rate of return on high-yield-bond mutual funds with historically a third of the downside risk of the markets.
Poor mutual fund choice, inappropriate asset allocation, the wrong risk level, inefficient tax management, and an unwillingness to let time do its magic will result in a less than desirable outcome.
They should definitely not take the word of pension and mutual fund managers who tend to argue that this kind of risk-related "due diligence" is already being performed or, worse yet, is not material to their decisions.
"If a mutual friend becomes obese, it nearly triples a person's risk of becoming obese, " the book said.
Unlike regular mutual funds available to everyone, they are free to pursue higher risk, higher return investment strategies and do not offer the protection given by regulated funds.
Interestingly, the SEC just announced the increasing use of alternative and hedge fund strategies by mutual funds, ETFs and variable annuities as a new and emerging risk.
Individual investors, hedge funds, pensions, mutual funds and every other breathing organism on Wall Street continue to have their risk antennas in a fully raised position.
But in times when there is increased volatility, actively-managed mutual funds and banks can employ strategies that can help lower their exposure and risk to the market.
FORBES: 6 Reasons Why Day-Trading Your 401k is a Recipe for Disaster
In portfolio management, success come from selecting the right mutual funds, mixing asset classes together to create the right level of risk based on your needs, placing each mix in an appropriate account to reduce taxes, and letting it sit for a desired time horizon.
The buyers of debt (portfolio managers of mutual funds, investment trusts, insurance companies, etc.) need to understand the risk of the bonds that they buy.
Before investing spare dollars for retirement in mutual stock and bond funds, or buying complex insurance products that are subject to market risk, those 25-year-olds should first focus on savings.
FORBES: How Wall Street Unloads Its Risk On Unsuspecting Savers
Then in 1993 it dipped its toe in the water with a "Mutual Fund Select List, " a compilation of 75 funds Schwab recommended based on their risk, expenses and sector strategy.
Besides the risk to markets, however, a severe slump in share prices would provide the mutual-fund industry itself with its most severe test to date.
Mutual fund sales have slowed somewhat, but the public now has more of its savings capital at risk than at the peak of 1972, when the Nifty Fifty were comparably priced to the Nifty Twenty today.
应用推荐