June 2007

Mutual Funds News Update

The Fund Manager Shuffle
It's always important to keep a close watch on the fundamentals and performance of any of your mutual funds. That's why we're monitoring the manager changes going on at the mutual funds we track.

Retail funds falling out of favor in some 401(k)'s
Usually, the investments look nearly identical to the holdings of the mutual funds they replace, but they carry lower regulatory requirements and typically charge lower expense ratios because of the large groups, or pools, of investors they serve. Some have a mix of retail mutual funds and proprietary investments.

Mutual funds finding great buys overseas
In selecting the Kiplinger 25, our annual list of the best mutual funds, we found four outstanding choices among funds that specialize in overseas investments.

Burton Malkiel's Index of Insights
ETFs achieve much of the same investment aims as mutual funds without the costly transaction fees. The passive buy-and-hold technique common to index funds has proved over time to outperform the returns investors realize through actively managed mutual funds or individual stock picks, says Burton Malkiel, who has just come out with an updated, ninth edition of his book A Random Walk Down Wall Street.

Latin American funds could burn late-arriving investors
Investors in Latin American mutual funds have been Livin' La Vida Loca. That hit recording by Ricky Martin translates as living the crazy life. And it has been crazy: Latin American mutual funds are up 24 percent this year with a three-year

Investors rush to new funds
The growing volatility of China's stock market prompted investors to seek professional help yesterday as 25 billion yuan was dumped into units of two new mutual funds. "The investment portfolios of mutual funds are mainly composed of large-cap stocks, which are less risky to invest than other stocks now," said Liao Bojun, an analyst at Changjiang Securities.

Top 25 mutual funds

The joy of index funds
Question: I'm interested in mutual funds as a long-term investment and have noticed that index funds tend to have much lower annual expenses than actively managed funds. And if I'm sticking to index funds, am I better off in ETFs than regular index mutual funds?

'Price is Right' offers more sound advice on fund investing
When the last new Price is Right episode featuring long-time host Bob Barker airs this week, they won't replace the game show with something new about mutual funds. In mutual funds, it's an asset allocation game, one where the investor prioritizes their holdings to meet their risk tolerances and goals.

News - US mutual funds under attack
New York attorney general Eliot Spitzer has said his office has found evidence of illegal trading by mutual funds which leaves their shareholders out of pocket. Mr Spitzer said investigations found that ordinary investors were losing out from illegal trading in mutual funds' shares.

The Best Place for Your Money
My personal recommendation here is mutual funds, in which I've increasingly invested lately.

Double Your Money With Funds
You'll find more than 7,000 mutual funds out there, and yes, many of them stink. Don't think of opting for mutual funds as any kind of capitulation.

First 'Active' ETFs Might Look Familiar
ETFs resemble index mutual funds but trade on an exchange like a stock.

Keep it simple for college savings
Index funds and Series I Savings Bonds are conservative options that work. Q: How about some guidance on saving for college? My daughters both have new babies and want to start saving for college. I recommended mutual funds with Vanguard.

News - Congress backs new funds regime
US legislators have approved a draft law aimed at stamping out irregular trading in the mutual funds industry. It is designed to protect millions of Americans who place their long term savings in mutual funds.

Mutual funds face tough competition
When the merely average – such as benchmarks like the Standard

Mutual Funds, ETF News

Pension funds outperform mutual funds, study shows
The study compared average returns of Canadian equity mutual funds with the Canadian equity component of pension plans between 1996 to 2004. It found pension plans beat stock-market returns by an average of 1.2 percentage points per year, while mutual funds underperformed market returns by an average of 2.6 percentage points a year.

Mutual Funds Not Necessarily a Bargain
Mutual Funds Not Necessarily a Bargain The Finance Professor tackles the mutual fund claims of low costs, diversification and index outperformance.

Individual Investors Ride Market Rally With Funds, Not Stocks
But instead of buying individual stocks, many are putting money into mutual funds--especially those that invest in foreign stocks. Although mutual funds and exchange traded funds carry their own risks, many investors see them as a way to spread their risk and are therefore considered safer than individual stocks.

Investing on the Cheap
It's easy for them to get stung by opting for high-cost managed mutual funds. One easy way for small investors to keep a lid on costs is to go for index funds instead of managed mutual funds.

Mutual Funds: Mutual-fund and ETF performance, analysis and more
Vanguard Group, recognized for low-cost mutual funds and exchange-traded funds, is pressuring its ETF rivals with international-stock offerings that scrape the barrel on fees. Securities regulators are planning to review the fees charged by mutual funds to compensate underwriters and brokers for sales, before they reform or repeal those fees later this year.

The World of Religious Mutual Funds
But religion-based mutual funds do exist, and they're growing in number. The Timothy Plan is a family of mutual funds offering individuals, like yourself, a biblical choice when it comes to investing.

Best-Performing Mutual Funds in 2007
All eyes have been on China as the engine powering the strong growth of international stock funds. However, according to Lipper, the fund sector that has posted the best returns in the year-to-date period has a decidedly Latin flare.

This week's Mutual Fund stories
Vanguard Group, recognized for low-cost mutual funds and exchange-traded funds, is pressuring its ETF rivals with international-stock offerings that scrape the barrel on fees. Securities regulators are planning to review the fees charged by mutual funds to compensate underwriters and brokers for sales, before they reform or repeal those fees later this year.

News - US mutual funds under attack
New York attorney general Eliot Spitzer has said his office has found evidence of illegal trading by mutual funds which leaves their shareholders out of pocket. Mr Spitzer said investigations found that ordinary investors were losing out from illegal trading in mutual funds' shares.

How To Search for a Winning Fund
Unlike mutual funds, ETFs can be traded intraday, shorted and placed with stop or limit orders.

Five mutual funds to keep your kid in prep school
And my fourth book was also released, "Mutual Funds on the Net." Internet investing was new (some people still thought "browser" was the family pooch).

Best mutual funds
First get organized. Then, get aggressive about investing. This portfolio will help anyone with decades to go benefit from stocks' long-term potential. (more) This divorced mother of two got a late start in crafting her retirement plan. 

Top 25 mutual funds