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BUSINESS
By WERNER RENBERG | August 29, 1993
"I am told that no-load funds are the only mutual funds to buy because they have no sales fees," a Minneapolis reader says. "If no-loads are so great, why would anyone buy a fund with sales fees? Why are sales fee funds still around?"Several readers have raised questions about no-load funds -- just as sales channels for them are being expanded via Charles Schwab and Fidelity's discount brokerage organization. You, too, may wonder whether no-loads are as desirable as they seem.No-load funds, begun in 1928 by the predecessor of today's Scudder Income Fund, have allowed you to buy and redeem shares without paying a sales charge, provided you deal directly with their sponsors.
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BUSINESS
By HUMBERTO CRUZ and HUMBERTO CRUZ,TRIBUNE MEDIA SERVICES | June 18, 2006
Two e-mails from readers hit on the same theme. Here's the first: My husband just retired and consulted with his broker as to what to do with the money in his 401(k) plan, which is invested in no-load Vanguard mutual funds. His broker suggested rolling over the money into an IRA with the American Funds. The American Funds charge a 5.75 percent load. The broker told my husband he wasn't generating enough money in commissions for him. And the second: I put $4,000 into an IRA with American Funds through my brother, who is a financial planner.
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BUSINESS
By HUMBERTO CRUZ and HUMBERTO CRUZ,TRIBUNE MEDIA SERVICES | June 18, 2006
Two e-mails from readers hit on the same theme. Here's the first: My husband just retired and consulted with his broker as to what to do with the money in his 401(k) plan, which is invested in no-load Vanguard mutual funds. His broker suggested rolling over the money into an IRA with the American Funds. The American Funds charge a 5.75 percent load. The broker told my husband he wasn't generating enough money in commissions for him. And the second: I put $4,000 into an IRA with American Funds through my brother, who is a financial planner.
BUSINESS
By CHARLES JAFFE | August 7, 2005
NEARLY $1 out of every $5 that went into mutual funds last year flowed into funds that charge a sales load, compensating a broker or planner for making the sale. But a new study from the University of Michigan indicates that investors who pay for financial help might want to avoid load funds altogether, because they carry a surprising cost beyond the sales fees. The Michigan study showed that when a mutual fund adds additional share classes -- coming up with new ways for brokers and planners to pitch the product to customers -- performance tends to suffer.
BUSINESS
By CHARLES JAFFE | August 7, 2005
NEARLY $1 out of every $5 that went into mutual funds last year flowed into funds that charge a sales load, compensating a broker or planner for making the sale. But a new study from the University of Michigan indicates that investors who pay for financial help might want to avoid load funds altogether, because they carry a surprising cost beyond the sales fees. The Michigan study showed that when a mutual fund adds additional share classes -- coming up with new ways for brokers and planners to pitch the product to customers -- performance tends to suffer.
BUSINESS
By JANE BRYANT QUINN and JANE BRYANT QUINN,1991, Washington Post Writers Group | May 19, 1991
Are you planning to invest? Are you hunting for a top-performing mutual fund? Be warned: Your usual source of such information is flawed.Most investors keep an eye on the mutual-fund performance lists published in newspapers and magazines. Brokers and financial planners have performance data, too.But most of these lists contain a critical error. They calculate the funds' returns without counting any "load" (upfront sales charge) that you paid to buy them. This makes the load funds look better than they really are. And it masks the good performance of some no-load funds, which levy no upfront charges at all.Say, for example, that you put $5,000 into each of two funds, one with a 5 percent load, one with no load, and both return 10 percent for the year.
BUSINESS
January 13, 1991
Mutual-fund basics are simple. Rather than pinning all your hopes on a few individual stocks, mutual funds allow you to diversify your holdings into a much larger universe of investments. Also, instead of worrying about what to do with your funds each day, you are in effect hiring investment professionals to make these decisions.These investment experts accept your money and put it into a pool of investments that they have chosen to meet certain investment goals that have been described in advance to all potential investors.
BUSINESS
By ANDREW LECKEY | July 4, 2004
I AM 27 years old, consider myself an aggressive investor and add a significant amount to my portfolio on a regular basis. I own shares of Cisco Systems Inc. What is the outlook for the company? - T.D., via the Internet The world's largest maker of equipment that directs Internet traffic is so confident that the economy and capital spending are improving that it plans to hire 1,000 workers through the rest of 2004. It recently launched its much-ballyhooed CRS-1 router that targets its largest customers.
BUSINESS
By WERNER RENBERG | April 7, 1991
Now that first-quarter performance data for bond and equit funds have begun to appear, you can check on the funds you own and compare their results for various periods that ended March 31 with others having similar investment objectives or with bond and stock indexes.You can see whether another fund looks more promising -- more likely to help you attain your investment goals -- than one of yours.You may decide whether to stay with the funds you hold and perhaps invest more money in them, to switch funds or to add a new one.It's a good bet that the data on which you'll rely have been calculated by Lipper Analytical Services, which covers more funds than anyother service and whose statistics are the most widely used.
BUSINESS
By JANE BRYANT QUINN | February 14, 1993
New York -- Never has there been a stronger case for choosing a mutual fund yourself, without paying any sales commissions. Although the average upfront sales charge has been coming down, the annual fees charged to fund holders have been going up. The more you pay, the less you net from your investment.Take the Pioneer Equity Income Fund and the T. Rowe Price Small Cap Value Fund, two stock-owning funds that earned 20.9 percent last year. Pioneer charges an upfront sales fee of 5.75 percent, so its new investors actually netted only 13.9 percent.
BUSINESS
By ANDREW LECKEY | July 4, 2004
I AM 27 years old, consider myself an aggressive investor and add a significant amount to my portfolio on a regular basis. I own shares of Cisco Systems Inc. What is the outlook for the company? - T.D., via the Internet The world's largest maker of equipment that directs Internet traffic is so confident that the economy and capital spending are improving that it plans to hire 1,000 workers through the rest of 2004. It recently launched its much-ballyhooed CRS-1 router that targets its largest customers.
BUSINESS
By EILEEN AMBROSE | April 13, 2003
IF YOU'RE buying a mutual fund through a broker, it pays to know your ABCs. In this case, the alphabet designates the class of shares you're purchasing. You'll generally find different share classes in funds that carry loads, or sales charges. While a mutual fund's investments and money manager are the same no matter the class of shares, each class has its own expenses and sales charges that go toward compensating brokers or financial advisers for their guidance. It's the investment professional's duty to advise investors on the class of shares best suited for them, factoring in the amount being invested and how long the shares will be held.
BUSINESS
By CHARLES JAFFE | January 26, 2003
MUTUAL FUNDS generally don't print coupons or give rebates. But some do give discounts, provided you invest enough money. This month securities regulators warned that some investors in load funds may not be receiving those discounts, thanks to their own naivete and inadequate tracking tools by fund companies and brokerage firms. The National Association of Securities Dealers issued an investor alert Jan. 15 pointing out that many people are not getting discounts to which they are entitled on the purchase of mutual funds sold with an upfront sales charge, or load.
BUSINESS
By CHARLES JAFFE | October 21, 2001
IN PICKING a new fund for the Roth IRA this year, I realized that the way I pick funds has changed again. It's no big deal, just a further refinement of a process that changes as I learn more. I first described my personal methodology for picking a fund shortly after I began writing this column in 1994. The changes over time have been on the margins, not at the core of my investment philosophy. But investors' long-term happiness with a fund often traces back to what they were thinking when they first bought it, so finding a comfortable method for choosing funds is smart.
BUSINESS
By Julius Westheimer | August 14, 1998
ARE YOU thinking of buying a mutual fund? Before buying, you will be given three options: Class A, B or C shares. It's important to choose the right one for you.According to Perspectives, the newsletter of the Institute of Certified Financial Planners, "each class provides a different way to pay for advice you receive in selecting a fund. (No-load funds do not have share classes.) Which class you choose depends on how much you invest and how long you will leave it in the fund."Class A: These shares carry the front-end sales charge, or "load," that brokerage firms traditionally charge, roughly 2.5 percent to 6 percent.
BUSINESS
By Jeff Brown and Jeff Brown,KNIGHT RIDDER/TRIBUNE | March 29, 1998
Sure it's a jungle out there in investmentland, but you can easily find your way with a good travel guide.I'm talking, of course, about the immense and ever-expanding world of mutual funds. To use the oft-quoted statistic, there are more funds than there are stocks on the New York Stock Exchange and Nasdaq combined -- more than 11,000 funds vs. about 9,400 stocks. However, a good fund guidebook will help you pare the list to a usable size. Many guides issue new editions in the spring, based on the previous year's data.
BUSINESS
By JANE BRYANT QUINN and JANE BRYANT QUINN,1993, Washington Post Writers Group | June 27, 1993
New York--Europe is a mess. Scandal in Italy, recession in Germany, mounting unemployment in France. Manufacturing jobs are leaking away, not only to low-wage Asian countries but even to America and Japan. German Chancellor Helmut Kohl's domestic "solidarity pact," designed to promote recovery, hasn't yet borne fruit.I guess it must be time to invest.It was Fred Schwed Jr., author of the classic 1940 send-up of Wall Street, "Where are the Customers' Yachts?," who penned all you ever need to know about market timing.
BUSINESS
By WERNER RENBERG and WERNER RENBERG,1992 By Werner Renberg | September 20, 1992
A 46-year-old self-employed reader whose business is doing well and whose wife is employed as a legal secretary writes that he wants to invest $40,000 in a mutual fund to get a higher return than the interest he earns on the money in his bank's money market fund."
BUSINESS
By BLOOMBERG BUSINESS NEWS | August 11, 1996
BOSTON -- With 7,000 mutual funds out there and more arriving each week, picking just the right one is becoming as bewildering for the little investor as picking the right stock.As a result, an increasing number of individuals are turning to brokers and financial planners to tell them which funds to buy.The Investment Company Institute, the mutual fund trade group, estimated that 44.6 percent of new fund purchases in the first half of 1996 were made through brokers and advisers who were paid commissions of as much as 5.75 percent.
FEATURES
By SUSAN BONDY and SUSAN BONDY,Creators Syndicate | November 6, 1994
Many people think the stock market still offers opportunities for good returns. But the question is "Which stocks should you buy?"You can try to guess the stocks that might outperform the averages. But most people don't have the time, the inclination or the skill. Even investment professionals who spend their careers poring over facts and numbers often end up below the averages.You can buy a mutual fund that invests in many stocks, but again, which one? There are growth funds and income funds, special situation funds and balanced funds, load funds and no-load funds, closed-end funds and open-end funds.
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