Personal Finances and Loans Solutions » business opportunities http://www.personal-finances-advisor.com Make your financial advice personalized Fri, 14 May 2010 13:47:04 +0000 en hourly 1 http://wordpress.org/?v=3.0 Is the index the right finger to be pointing? /is-the-index-the-right-finger-to-be-pointing/ /is-the-index-the-right-finger-to-be-pointing/#comments Fri, 28 Aug 2009 17:31:38 +0000 admin http://www.personal-finances-advisor.com/?p=52 For investors tired of watching mutual fund managers make lousy decisions  and underperform the market, mutual fund families invented the index  fund. The manager of the index fund buys and holds the stocks in the market  index. Index funds return exactly what the market returns. Index funds  have become extremely popular in the last decade.

As index funds increase in popularity, many non-index funds also imitate  the indexes. Increasingly, more and more funds buy the same stocks, have  exorbitant marketing expenses, and have the same goal: increasing funds  under management. Stock selection is motivated by this goal. A fund full of  unknown stocks will not be recommended by financial planners or understood  by the public. Unusual funds are quickly labeled “too risky” and disappear.

Mutual fund families comb through the stock picks of each fund and  assure that a minimum number of the popular index stocks are present.  Managers who vary too far are reprimanded and eventually fired if they do  not conform.

]]> /is-the-index-the-right-finger-to-be-pointing/feed/ 0 Patronage Websites /patronage-websites/ /patronage-websites/#comments Fri, 26 Sep 2008 10:17:28 +0000 admin http://www.personal-finances-advisor.com/?p=8 The following websites are under our patronage:

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