Sometimes I am amazed that there is still a debate over investing in index mutual funds vs. actively managed mutual funds. Index funds have a proven record without the added risk.

Low load mutual funds work the same way as DSC funds. The financial advisor gets a lower commission, usually 3%, as a result the MER does not have to be increased as much and you are only locked in for 3-4 years instead of seven. A much better option for you, but not as good an option for your advisor since their commission is decreased. If you hold DSC funds you may want to ask your advisor way they did not offer you low load funds instead. Almost all funds that have a DSC option have a low load option as well.

Just in case if the company falls down in the market, shareholders get the money which is equal to their ownership value. You can invest in individual stocks or closed end funds. It is always better to read in details about the various mutual fund of India before investing money. More importantly you will need to access your own goals and the risks involved. Asset allocation is also very important or else you may find your portfolio to have funds that are all invested in the same thing. A good portfolio will have diversification and will reduce the risk.

„Over the last five years, only 10% of active funds in the International Equity category, 13.9% in the Global Equity category, and 9.2% in the U.S. Equity category have outpaced S&P EPAC LargeMidCap, S&P Developed LargeMidCap and S&P 500 indices respectively.“ So over the last five years 93.6% of Canadian equity funds, 90.8% of US equity funds, 90% of International equity funds and 86.1% of Global equity funds have underperformed their respective indices.

If you pay your financial advisor an annual fee for managing your money, usually based on a percentage of your assets then chances are your own F class mutual funds. These mutual funds remove fees associated with paying commissions and trailer fees to your advisor so the MER is normally about 1% lower. This is done so the advisor can charge you directly and not receive further compensation from commissions.

It could be really tricky to find the best fund for you. You may like to invest in a fund whose manager thinks exactly the way you do. Important is to get comfortable with the fund manager who understand your needs and accordingly take action. You may also buy an index fund which runs on autopilot. It is always better to read the annual report before investing. Fund manager compares the NAV’s of various companies and suggests the best option. Just be careful with high risk portfolios to play safe in the market

Want to find out more about a Successful Financial Advisor, then visit this site.