Protect Yourself -- Beware Of Mutual Fund Companies
Most individuals may not realize this, but investments are very important to assure financial stability for the present and the future. Money comes and goes like water, savings dry up, salaries and wages disappear just like that! It is a wise decision to invest your money on something worthwhile, something that will not only give you earnings but can become a considerable asset for the future.
A sound investment for beginners is mutual funds. A mutual fund is simply a firm that collects money from investors and invests them on stocks, bonds, and other money market instruments. If you invest in one, you will be considered a share holder and your portfolio will consist of a diverse investment.
Scandals
With all the recent scandals that surround investment companies, its no wonder people are so wary of mutual fund companies. The general population does not like being cockled out of their hard earned cash.
Financial firms are not in a habit of giving advice to small client. If the commission is high enough brokerage firms will recommend any mutual fund companies that looks legitimate without really minding the probable cost, profit or risk it may pose for the investor. Management condones these actions because the company will have high profit.
Are Any Of Them Trustworthy?
While trustworthy mutual fund companies are hard to find, there are a few who deliver what they promise. The important thing is to find a sound mutual fund company that is just as accommodating to the small investors as they are to their large clients.
Vanguard Mutual Fund Company, Fidelity Funds, American Funds, Franklin-Templeton Funds, and Hartford Mutual Funds are a few of the most reliable mutual fund companies in the industry today. They are very well known for their low cost, stable and well managed funds. In fact, Vanguard 500 index fund has the largest portfolio globally. Vanguard comes highly recommended by people from the financial business.
Fidelity Mutual Funds is considered as one of the most prevalent mutual fund companies, rivaled only by Vanguard and American Funds. The company is well known for its innovations, investing philosophies and their active take on seeking solution for retirement fund dilemmas.
Being one of the oldest mutual fund companies makes American Funds enjoy the top of the pecking order. Longevity, performance, and sales commissions have also helped in keeping its popularity at an all time high. American Fund has held up well despite speculations that its fame will mar its financial viability.
