Investing, Let start with Mutual Fund.

Mutual fund is spreading introduce to investors. Get to know about Mutual fund and why you should not miss this type of investment.

What is Mutual Fund and how does it work?

Mutual Fund is the common name for an open-end investment company.
Mutual funds pool money from many investors and invest the money in stocks, bonds, short-term money-market instruments, or other securities depend on the investment objective of fund. Mutual Fund issue redeemable shares that investor’s purchase directly from the fund (or through a broker for the fund) instead of purchasing from investors on a secondary market. Furthermore the investors can sell their shares back to the fund (or to a broker acting for the fund). The investment portfolios of mutual funds typically are managed by professional known as "investment advisers" that they must register with the SEC.

How can the investors earn money from mutual fund?
Investors can earn money from mutual fund investment in three ways:

1. Increased NAV
NAV (Net Asset Value) the value of the funds assets minus its liabilities.

NAV = (Funds Assets – Funds Liabilities)/ number of outstanding shares

SEC rules require funds to calculate the NAV at least once daily. So If the market value of a fund's portfolio increases after deduction of expenses and liabilities, then the value (NAV) of the fund and its shares increases. The higher NAV reflects the higher value of your investment. When you sell your share back to the fund you can profit from capital gain of share.

2. Capital Gains Distributions. At the end of the year, most funds distribute these capital gains (minus any capital losses) to investors.

3. Dividend Payments. Like a company, the fund may earn income from dividends and interest on the securities in its portfolio. The fund then pays its shareholders nearly all of the income (minus disclosed expenses) it has earned in the form of dividends to the investors.

This depends on the fund policy that they state in Prospectus of the Fund. Not all fund pay dividend to investors, so you need to read the prospectus clearly.
If the mutual fund has no policy to pay dividend, they use the dividend to reinvest in their portfolio, result to fund growth and increasing of NAV and Capital Gains that the investor can earn from the fund instead of dividend.

Mutual Fund is a good alternative to invest. Why should invest in mutual fund?

Mutual fund is recommended to the new investor with a lack of experience and who does not have a lot of money to invest but want to earn more than interest from saving you can try mutual fund, but remind that investment in mutual fund is higher risk than saving. Some mutual funds accommodate investors who don't have a lot of money to invest by setting relatively low dollar amounts for initial purchases, subsequent monthly purchases, or both.
Mutual fund also spread your investments across a wide range of companies and industry sectors can help lower your risk if a company or sector fails. Some investors find it easier to achieve diversification through ownership of mutual funds rather than through ownership of individual stocks or bonds with small money.

Moreover the investors who do not have much time to follow market news this may cause highly loss. Mutual fund manages by professional money managers who research, select, and monitor the performance of the securities the fund purchases. So they may use less time to research and make decision than invest directly to stock on bond on their own.

Achieve Your Dreams: Six Steps to Accomplish Your Goals and Resolutions

From Susan M. Heathfield,

Don't let your goals and resolutions fall by the wayside. Chances are that to achieve your dreams and live a life you love, those goals and resolutions are crucial. Goal setting and goal achievement are easier if you follow these six steps for effective and successful goal setting and resolution accomplishment.

• You need to deeply desire the goal or resolution. Napoleon Hill, in his landmark book, Think and Grow Rich, had it right. "The starting point of all achievement is desire. Keep this constantly in mind. Weak desires bring weak results, just as a small amount of fire makes a small amount of heat." So, your first step in goal setting and achieving your dreams is that you've got to really, really want to achieve the goal.
• Visualize yourself achieving the goal. Lee Iacocca said, "The greatest discovery of my generation is that human beings can alter their lives by altering their attitudes of mind." What will your achievement feel like? How will your life unfold differently as a result? If the goal is a thing, some gurus of goal setting recommend that you keep a picture of the item where you see and are reminded of it every day.
• If you can’t picture yourself achieving the goal, chances are – you won’t.
  Make a plan for the path you need to follow to accomplish the goal. Create action steps to follow. Identify a critical path. The critical path defines the key accomplish-ments along the way, the most important steps that must happen for the goal to become a reality. Stephen Covey said, "All things are created twice. There's a mental or first creation, and a physical or second creation of all things. You have to make sure that the blueprint, the first creation, is really what you want, that you've thought everything through. Then you put it into bricks and mortar. Each day you go to the construction shed and pull out the blueprint to get marching orders for the day. You begin with the end in mind." He's right.
• Commit to achieving the goal by writing down the goal. Lee Iacocca said, "The discipline of writing something down is the first step toward making it happen." I agree completely. Write down the plan, the action steps and the critical path. Somehow, writing down the goal, the plan and a timeline sets events in motion that may not have happened otherwise. In my own life, it is as if I am making a deeper commitment to goal accomplishment. I can’t fool myself later. The written objective really was the goal.
• Establish times for checking your progress in your calendar system, whatever it is: a day planner, a PDA, a PDA phone or a hand written list. If you’re not making progress or feel stymied, don't let your optimism keep you from accomplishing your goals. No matter how positively you are thinking, you need to assess your lack of progress. Adopt a pessimist’s viewpoint; something will and probably is, going to go wrong. Take a look at all of the factors that are keeping you from accomplishing your goal and develop a plan to overcome them. Add these plan steps to your calendar system as part of your goal achievement plan.
• Review your overall progress regularly. Make sure you are making progress. If you are not making progress, hire a coach, tap into the support of loved ones, analyze why the goal is not being met. Don’t allow the goal to just fade away. Figure out what you need to do to accomplish it. Check the prior five steps starting with an assessment of how deeply you actually want to achieve the goal.

This six step goal setting and achieving system seems simple, but it is the most powerful system you will ever find for achieving your goals and living your resolutions. You just need to do it. Best wishes and good luck.

Resource : http://humanresources.about.com/od/strategicplanning1/a/goal_setting.htm

Don't Leave Stocks Unattended while on Vacation

From Ken Little

you are planning a summer vacation, don’t forget to arrange to take care of your stock positions along with the dog, the plants and your mail.
You don’t want to leave any of those unattended for any length of time.
Technology permits you to take stock monitoring with you virtually (pun intended) where ever you go. However, this is a vacation and you may not want to spend it watching the Dow.
Some protection What you need is some protection in place to prevent significant losses if your stocks melt down while you’re relaxing on a beach somewhere. You may also want to jump on a stock that you’ve had your eye on, but felt was currently over-priced.
You can solve both these problems with a couple of standing orders with your broker.
A stop loss order tells your broker that if the stock’s price slips to this level, you want to sell.

This prevents you from suffering a significant loss and is executed without any further action on your part.
You’ll want to set the stop loss price below the current trading range of the stock so normal price fluctuation doesn’t activate it. For some stocks, five percent below the current market price is just fine, while stocks that are more volatile may need a bigger cushion.
If you have a nice profit in a stock that is still rising, you probably want to use a variation of the stop loss called a trailing stop. Read my article on trailing stops for more information on this easy tool.
Long-Term Hold If you have a stock that you feel is a hold for the long term, you may be willing to let it slip farther.
If there is a stock you want to buy, but are looking for a better price you can leave a limit order with your broker. A limit order specifies the number of shares and price you are willing to pay for the stock.
If the stock hits that price or lower, your broker will execute the order.
Of course, there is a small danger with limit orders. What if the stock you had your eye on suddenly turns to dust because of some corporate scandal? Your limit order would be executed as the stock plunged into the toilet. It doesn’t happen that often, but it could, so be aware of the risk.
Conclusion You don’t have to leave your stocks unattended when you go on vacation. Use some of the available stock orders to help protect your portfolio and plenty of sun block to protect your skin and you’ll enjoy the vacation even more.

Article Resource : http://stocks.about.com/od/tradingbasics/a/Vac051005.htm

Is The Stock Market Right For You?

By Gabriel J. Adams

You might have heard of small individual stock investors becoming rich from a few wise investments. Perhaps you long to become part of a large trading group that profits from the latest round of buying and selling shares of a company they hope will prove a moneymaker.

While all of these tales sound like something that could add to your financial stability, you should know that thousands of people across the globe take a stab at the stock market and plenty retreat with disappointment. Becoming aware of what it takes to succeed in the stock market world may help make the decision easier on whether or not taking this chance is right for you.

Stay Consistent
Before entering the stock market, you should establish a set of rules to stick by. It is important to stay consistent when dealing with the stock market. Lack of discipline will eventually lead to lack of profits. Those who get into the habit of chasing every stock market tip usually don’t make much money. These tips come a dime-a-dozen, so it is impossible to follow every lead. Showing discipline and sticking to a plan is needed in this business.

Avoid the Risk
Some traders jump into the stock market full of adventure, while others are more frugal. Some people, who carelessly make their decisions, have lost a fortune with the stock market. Those who spend their energy trying to protect their capital base will enjoy a higher level of financial safety. It is also said that you should never risk more than 3% of your portfolio on any one trade.

Don’t Lose Yourself
The stock market has its ups and down. Some people make a large profit while others lose a lot of money. Individuals with an impulsive personality must show restraint or rethink whether or not they will be able to handle the temptation to take risks. Once again, staying disciplined is highly recommended and knowing when to cut your losses if the time arises.

Know When to Take Chances
Traders also need to know when to take advantage of a stock that is rising. Some individuals become scared and jump out of a deal for fear that the stock will soon drop. Knowing when to take chances means allowing yourself to reap the benefits a little longer before abandoning a rising stock. If the stock should fall, you can then opt out with a little loss, but with more gain in the long run.

Not every transaction or decision you make has to generate money in order for you to prosper in the stock market. As long as you do not go below a pre-determined limit for yourself, testing the waters shouldn’t turn into a nightmare. Learning the ins and outs of the market before committing money will allow you to make the best decisions for yourself.

Learn how to invest the right way at http://www.1dayhold.com stock picks.
Article Source: http://EzineArticles.com/?expert=Gabriel_J._Adams

7 Things To Remember When Borrowing Money

By Michael Estrin
Financial Correspondent - Every 2nd Sunday
Resource : http://www.askmen.com

Whether you're starting a small business, remodeling your home or just paying some bills, from time to time you'll need to borrow money. Whether you choose to use your line of credit or take advantage of some equity in your home, you'll want to know what you're getting yourself into before you sign the deal. Here are some things to consider.

1- Shop for the best interest rate

The main thing that you'll be comparing when you're looking for a loan is the best interest rate, which is essentially the price of the money. It's easy to fall for a good sales pitch, but a prudent borrower does his homework. Ask several banks for quotes and then do the same with brokers. You'll get an idea of the price range, but don't be afraid to tell the lowest-priced broker that you think he can do better, especially if other quotes are close. Of course, you need to make sure that you're comparing apples to apples, so be certain that your loan quotes reflect the same amount and time period, and be sure to account for fees.

2- Consolidate your loan

Loan consolidation can have two advantages:A- It's easier to manage one bill at the end of the month instead of three or more.B- You can lock in a low interest rate.
Of course, you take a risk; if interest rates continue to drop, you may not be able to reconsolidate, which means you'll be paying more for your money. But if they rise, you'll be sitting pretty.

3- Use equity

Your home equity is actually your money, and sometimes it pays to use it. You can take equity out (essentially, get a check from the bank equal to some or all of your equity), or you can open a line of credit against your equity (essentially using your home as security for the loan). Because this is a secured loan, you should get a better interest rate than a credit card, but on the downside, if you default, you could lose your home. If you take out a home equity loan, make sure you do so to finance a worthwhile project.

4- Utilize your line of credit

If you don't own a home or don't want to use your home equity, you can use your line of credit. Essentially we're talking about a credit card. While charging it is almost never the foundation of solid financial planning, a credit card has its merits. First, they're great in an emergency. Second, you won't have to justify your plan to anyone before you charge, which means that you have ample flexibility. On the downside, you're going to pay higher rates. However, you should always try to negotiate a lower rate with your credit card company. Remember; credit cards are a competitive business and it never hurts to ask for a deal.

5- Check the fine print

Whenever you sign a loan document, you'll need to check the details. Two big issues to keep in mind are default and early repayment. Default means that you did not pay on time, and you'll want to know when you're technically in default (30, 60, or 90 days), and what that means (does the whole balance become due; can they seize your assets?). On the other hand, you'll want to know about early repayment. It may sound odd, but some lenders charge a penalty for repaying early. After all, the sooner you pay, the less interest they make. So you'll want to know if you can do that without a penalty.

6- Avoid payday loans

Companies that advertise cash loans with no credit check and no collateral make their money by doing volume business and charging outrageously high rates (upwards of 300%) and penalties. Those companies prey on the desperate guys out there, and they should be avoided at all costs.

7- Maximize your credit score before you borrow

The price you pay for the loan will depend greatly on your credit, so if you're planning to borrow in the immediate future (six months out), check your score and see what you can do to improve it. If you've missed payments on credit cards and utilities, make sure that you make timely payments for the next six months. And take that time to clear up any mistakes or outstanding issues on your credit report.

borrowing money

Shopping for a loan can seem like a daunting task, especially if you've never done it before. But in a lot of ways, a loan is just like buying a car or a major appliance; they all come with different features and prices. Once you get beyond the intimidation factor, you'll see that with multiple sources, you'll be able to compare apples to apples. So do your homework.

Use Credit Cards Like A Pro

By Corey Weiner
Financial Correspondent - Every other Sunday
Resource : Askmen

Credit is a commodity that is just as vital as the air we breathe these days. Even the U.S. government spends beyond its means and relies on credit at times. Here are a few ways to ensure that you use your credit cards wisely, and to benefit from them as well.

Do your homework

A little research will save you time, money and aggravation in the long run. Take a few minutes to weigh the good and the bad of a credit card before you even apply. In the credit game, all cards are not created equal. For example, some will offer very competitive introductory interest rates, while others charge an annual membership fee but offer frequent flyer miles or merchant discount coupons on certain purchases. Your credit card should suit your financial needs, so don’t just fill out any credit application that arrives in the mail. Assess your credit card use by considering what kind of balance you typically carry from month to month, then go with a financial institution you feel comfortable owing money to. Customer service can be a huge factor if you have to dispute a purchase or you miss a payment by a few days. Opt for a bank that offers a favorable grace period and is eager to help you versus an institution that treats you as though it is doing you a favor by issuing you a credit card.

Stick to one card

OK, two if you must. If you find yourself owing various amounts among several cards, consolidating those menacing balances into one at a competitive interest rate could be a very smart move. First, you’ll save by paying only one low rate; most companies offer an attractive annual percentage rate (APR) on balance transfers. The second advantage is psychological; it can be very draining on an individual to cut a host of checks to his creditors each month. Instead, you’ll have peace of mind making only one lump payment to a single company; you’ll spare yourself the headache of juggling statements and balance due dates each billing cycle.

Maximize your card’s benefits
The banking industry is always adapting as key players fiercely compete for market share. Use this to your advantage and seek the most out of your credit card. For instance, this could mean discounts on purchases from affiliated merchants, free points toward airline tickets or an assortment of alternative incentives for account holders in good standing.

One of the most valuable features of a good credit card account, however, is consumer protection under certain circumstances. Whenever possible, use your credit card for substantial purchases like moving services, major auto repairs or hotel reservations. If an arrangement goes south or someone doesn’t live up to their part of an agreement, it pays to have a paper trail. Major credit card issuers can often help you file a dispute, conduct an investigation and recover your money if they discover any foul play.

Do better than the minimum
Generally, the term “minimum” has negative connotations, such as in “minimum wage,” “minimum skills” and “minimum protection.” If you want to maintain good credit, discipline yourself to ignore “minimum” payment amounts. As a prudent consumer, you should be using credit cards to your advantage, not the bank’s. You pay for something with a credit card today, and when the statement arrives a few weeks later, you should pay back the same amount plus a small finance charge for “briefly borrowing the bank’s money.”

The reality is, however, that plenty of consumers don’t have the money to pay the outstanding balance when the statement inevitably arrives. Instead, they make the minimum payment and carry the balance; unfortunately, paying the minimum amount often barely covers interest, let alone any of the balance. Now multiply this by six or 12 months’ worth of purchases and you will see how quickly you can find yourself in debt.

Paying more than the minimum will minimize your finance charges and leave you in good standing with the bank. If you keep this up, you will soon receive a credit limit increase notice in the mail. So the next time an emergency pops up, such as having to replace a washer/dryer or the tires on your car, the necessary credit will be at your fingertips.

become a credit pro ....

Remember: Everyone uses credit, even the biggest, most successful investors and corporations in the world. Know the responsibilities that come with the territory, maintain your own records, pay attention to money-saving opportunities, and use the bank’s resources to your advantage.

Lowering Expenses

by Jacob Joseph

REDUCING YOUR MONTHLY EXPENSES. Do you struggle with managing your finances? Does it seem like you just never have enough money?
Featured below are some tips on how you can lower your monthly bills and expenditures. You may find that some of these suggestions are not going to help you. However, you will definitely be able to utilize more than one of them.
Shopping Smart
Never buy anything on impulse! Ensure that you are getting the lowest price for your purchases by doing research. This will entail visiting several stores and/or websites. Locating the best deals instead of impulse buying will typically save a significant amount of money. It will take you some time and effort, but anytime you save money its worth the extra work. The money you save can be used for paying off debt, investing, or for whatever your needs are!
Transfer High Interest Credit Cards to One Account
Credit card companies make their money by means of the high interest rates they charge. If you have several credit cards, it would be a good idea to apply for a card that offers an introductory rate of 0% for balance transfers. Not only will you be able to pay off your credit cards at a faster rate, you'll save money in the process. There are a wide variety of credit cards that offer 0% intro APR on balance transfers. Try and find one that offers rewards that will beneficial for you.
Lowering Your Bills
This entails cutting back on utilities like cooling, lights, water, heating, etc.. For example, when you are not home, make sure all of your lights are off. Or, regulate your thermostat warmer or colder so that you are not wasting money by making your house comfortable as though you were there. This may be simpler for some, but not others. Find a routine that works for you, and stick to it. **A good idea would be to research your home and cell phone plans to see if you can find a new one offering the same benefits, at a less expensive rate. Try doing this with your cable or satellite TV provider. No matter if it is only a few dollars that you are saving every month, it is more money in your pocket!
Avoid Dining Out
Going to eat at restaurants is costly. By eating home, not only will you be saving money, you have the potential to eat much healthier and spend more quality time with your loved ones!
**When shopping at the grocery store, make a list with you beforehand. It is very likely that shopping without a prepared list will result in you purchasing goods that you either do not need or do not eat.
Keep Records of How and Where Your Money Is Spent
It may be difficult to do, but try and keep track of every penny that you spend for about three weeks. It is likely that you will be able to spot areas where you can tighten your belt or eliminate altogether. Change your spending habits and proceed to keep tabs on where your money is going. This will allow you to continuously evaluate your spending tactics so that you can reduce your expenses and save!


Develop a Budget
Figuring out where you spend your money will help you gain control of your finances. Budgeting will help you determine areas where you can reduce spending and what areas of your spending habits need to be changed. A budget is difficult to develop, but even more to maintain. Learn more about developing budgets.

In conclusion....
Over time, you will become more alert as to how and where you are spending your money and what you can do so that you spend less and save. In order to accomplish you short and long-term goals, you are going to have to make a concerted effort at changing your ways.
Jacob Joseph is a financial expert for http://www.starloanservices.com. At Star Loan Services you can learn more about managing money.
Article Source: http://EzineArticles.com/?expert=Jacob_Joseph

The Wonders of Compound Interest

by: Rosella Aranda
Resource : http://www.articlecity.com/articles/business_and_finance/article_1753.shtml

Albert Einstein called compound interest “the greatest invention of all time.” It has even been referred to as the “Eighth Wonder of the World.” The trick is to get this tremendous force working for you rather than against you.
Is compound interest gobbling up a significant chunk of your earnings? If you maintain an ongoing balance with a credit card company, compound interest is costing you much more than you probably realize.

Let’s start with basic interest, which is a fee that you pay to a lender for the privilege of borrowing his money. This interest is attached to the original amount at an agreed upon rate. Compound interest is calculated on the balance owing plus any previous interest charges. So then you find yourself paying interest on the interest. This compounding effect continues until it virtually takes on a life of its own. Credit card lenders make a killing putting this principle to work for them. Allow me to illustrate.

Let’s say you’re carrying a balance of $1,000 on a credit card with a 15% APR. If you pay only the minimum each month, you could conceivably gnaw away at this debt for over 25 years and end up repaying a total of over $3,400! If, on the other hand, you could commit yourself to paying $100 per month, this debt would be wiped out in less than a single year and the interest would come to a much less offensive $75.

Now let’s look at what would happen if you took $1,000 and put it to work for you instead of against you. Let’s assume that you are able to keep your hands off this money and simply let it sit and earn 6% interest compounded annually. After 12 years, your money would have doubled without you adding one extra penny!

You can quickly figure out in your head how long it will take for a sum of money to double by applying the “Rule of 72.” You simply take whatever interest rate you’re earning (6% in this case) and divide it into 72. The result will be the number of years required to double your money. (72/6 = 12 in our example)

You can apply the rule backwards as well. Let’s say you have a lump sum of $5,000 that you would like to grow into $10,000 in 8 years. You would need to find an investment that pays 9% compound interest. (72/8 = 9). If the best you can find is an 8% return on your money (hypothetically speaking,) then it would take you 9 years to double your money. Not bad for just letting it sit there!

Now let’s assume that you want to help the growth rate along, so you add an extra hundred dollars to this account just once a year. At the end of the 12 years, you would now have $3,800. If you could discipline yourself enough to add $200 a year, then you would find yourself with almost $5600.

Seeing your money grow like this might well entice you to invest more money each month and really reap the benefits of this wealth-generating principle. And there’s more good news. These examples demonstrate what happens when your investment compounds annually. Some institutions are more generous, compounding your interest quarterly, monthly or even daily.

It’s pretty clear which end of the compound interest principle you want to be on. The first step toward the winners’ circle is to pay off your existing debts. Even if you’re already having trouble making ends meet, a mere $1 addition to a minimum payment can significantly shorten the life of that loan. That’s right, just one dollar. You won’t miss it and it would be well worth it.

Remember the compounding effect. And once you’re out of debt, there’s no minimum for earning compound interest. Any sum that you can set aside will do. You don’t need to be Donald Trump or Bill Gates in order to benefit from compound interest. It can work wonders for us all.

About The Author
Rosella Aranda, international marketer, writer and business mentor, collaborates with a team of experienced professionals to help people achieve financial health and peace of mind. To learn how to reduce your debt, view: http://www.FreeFreedomSeminar.com. For further information on how you can become financially independent, please visit http://www.FinancialFreedomWorld.com or write to rosella_aranda@yahoo.com.

Personal Finance - Managing Your Own Personal Finances

By Dave Fletcher

Feeling financially secure in your future is a comforting thought. Learning how to manage your personal finances is a goal everyone should strive to as it brings about rewards rather than despair.

To help get you started you should first assess your current financial status. This is the essential first step as it outlines where all you personal finance sits. This can be a daunting task for anyone, and something most people avoid, however a basic understanding of your financials can improve your lifestyle and reduce your stress ten fold.

Understanding of your personal finances requires three things: current expenses, current income and awareness of any financial problems and desires.

Take note of how much you are spending. Make notes on your monthly expenses and match them off with your total income. If you find your expenses are more than your income then you need to make some decisions about reducing your expenses in order to avoid taking out unnecessary loans to get by.

A good approach to have when creating your personal finance plan is complete honesty. Be honest with yourself when deciding on how much you can really afford and your total expenses. By doing so you will have an accurate overview of your financial standing. If you are not honest then your assessment will be skewed and the possibility of worsening you financial situation is a high possibility.

Perhaps the single most important factor in your personal finance plan is discipline. Admittedly this is easier said than done, however strong discipline will allow you to decide on what you should spend your money on and what you should not. Discipline is imperative if you strive for a stress free financial future.

Build a solid understanding of financial terms and money saving methods. Before investing be sure you understand the market or deal.It is never too late to for a financial education and by doing so will allow you to make decisions surrounding your personal finance much easier. Seek out financial advisors such as your accountant, or financial planners. Research and understanding will allow you to achieve your financial goals much sooner.

Visualize you facial dreams as this provide the motivation to discipline yourself and stay on track. You will be able to decide on which financial desires are achievable and within realistic reach. Focus on realistic goals as they will provide success and keep you motivated to continue.
Without question, spending wisely is a very effective method of improving your personal finances. Very simply do not spend more than you can earn or make sure your outgoings are less than your incomings. You can easily manage your own personal finance matters with a bit of honesty, discipline and financial knowledge.

Dave Fletcher is a Finance Loans consultant specializing in personal finance solutions
Article Source: http://EzineArticles.com/?expert=Dave_Fletcher