Tag Archives: funds

Top 7 Things to Consider Before You Start Investing

Guest Article By Linda Terrill 

Be it investors, potential investors or general public who is looking to start investing, everyone gets excited the minute they have extra cash on their hands and one of the usual plans is to invest it for quick profits. People want to start making their money work for them and that’s a very understandable and rational thought but sure enough one needs to be practical about their finances as well. There is a lot of due diligence and groundwork that goes into understanding the financial markets before one must start investing and it’s for their best as well!

An investment making company will generally help you get started with your investment and offer you end-to-end insights into how to make more money and how to invest money to achieve your financial goals. However, there are a few things you as an investor must consider before approaching any Asset Management Company or getting started on your investment journey.

Here are the top 7 things one should consider before they start investing to make more money:

1. Pay Off Prior Dues

No investment can start without you actually being done paying off your dues and clearing your credit. A clean slate for all your debts is very essential to begin investing stress free and focusing on returns.

2. Create Cash Emergency Fund

Before you start investing it is very important for you to have a separate cash fund prepared just in case of emergencies. There is no questioning the volatility of the market and you can’t really depend on redeeming from market when in dire need. Having an emergency fund lets you start your investment journey with a bit more ease.
3. Create Financial Goals

One of the most important questions often asked is how to invest money and earn quick profits! However, there is much more to investing than just expecting returns. It is equally important to have your financial goals set it place and invest accordingly. Be it buying a dream home, car or saving for retirement, an investment making company will know exactly how to help you get started.

4. Understand Financial Instruments

There are tons of financial instruments in the market which offer numerous benefits. The bigger question often is what you as an investor wish to achieve, quick profit, long term stability, lesser risk or just saving for the future? It’s not tough to make more money with your investments as long as your priorities are already quite clear.

5. Due Diligence on Investment Options

Asset Management Companies have a variety of financial instruments that an investor can pick from and ensure that they make more money. If you want to know how to invest money wisely on the other hand then it is best if you do your due diligence on all the financial products in the market and then make an informed decision to earn quick profits.

6. Research on market trends

How to invest money wisely is indeed a question every investor should be asking themselves or the investment making company who is helping them build a portfolio. Keeping updated about the market, staying on top of news in the world markets and knowing the current business trends makes it easier for the investors to pick their financial instruments for investment.

7. Evaluate your risk bearing capacity

Every individual has their own risk bearing capacities. An investment making company will often ask you the risk level your profile fits in as an investor as it helps them decide where and how to invest money and earn quick profits. How to invest money is often a question answered at the expense of how much risk are you willing to take for the same,

As simple and lucrative investing and making quick profit sounds, the truth is that unless you have a foundation in place and thorough research to build up, your investment portfolio won’t be solid.

Asset Management Companies are there to help investors with their portfolio, right from researching and investing to managing and reinvesting investors’ wealth. If you are new to the world of investing then these pointers will make sure that it doesn’t seem intimidating anymore!

Megacoinwealth is a leading Asset Management Company. Our top professionals guide you on making sound investment decisions to help you achieve your financial goals.

Article Source: https://EzineArticles.com/expert/Linda_Terrill/2561984

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Searching For A Healthcare ETF

As I reviewed my investment portfolio I noticed that I am still missing an ETF for the healthcare sector. Personally, I’ve been leaning toward the Vanguard Health Care Index Fund ETF ($VHT). But I was interested to see what else was being offered so I did a bit more research.
I searched out for healthcare ETFs with these different Fund Families:

  • Fidelity
  • Invesco
  • iShares
  • Vanguard

The search resulted in about 11 different funds for review. I narrowed it down to 9 funds because Invesco S&P SmallCap Health Care ETF ($PSCH) and Invesco DWA Healthcare Momentum ETF ($PTH) does pay out dividends. Dividends are a key focus of mine so these 2 funds are automatically out. So now I look at the other funds and review the factors that I use for selecting ETFs that I’m interested in investing in. I look at dividend payout, dividend yield, and stock price. Based on those criteria, I eliminated the following funds:

$FHLC – this was the only healthcare fund being offered by Fidelity. Even though the price is very economical at $56/share, the dividend is too low to be worth the investment ($0.70/share) even though the dividend yield is around 1.23%. To be honest most of the fund in this list are paying out pretty close to this yield amount. Even if the stock price dropped close to its 52 week low range of $35, the yield would still be under 2%.

Then there’s $IEIH, an iShares fund that is trading at around $32/share. But it’s also paying out a low dividend of $0.40 for a yield of 1.22%. Even if the share price dropped to its 52 week low of $22.07/share the yield would still be under 2%.

Now we come to $IHF. This fund is trading at the high end of its 52 week range at about $228/share. Even if the price dropped to its 52 week low of $134.50, the current yield of 0.73% would not get that much better. It would only increase to 1.24%. Way below my criteria of 3% minimum.

That leaves us with the Invesco funds of $PBE, $PJP, and $RYH. I’m not going to detail these individually because they are all low dividend yield funds that pay out pennies per share. Their yields range from 0.04% to 0.82%. They’re all trading at the high end of their 52 week range so the yields will not be getting any better.

So, out of the 9 funds that were left, I eliminated 6 of them based on my criteria. Now I need to decide between:

$IHE – iShares U.S. Pharmaceutical ETF

$IYH – iShares U.S. Healthcare ETF

$VHT – Vanguard Health Care ETF

$IHE is the least expensive of the 3 funds. It’s trading at the high end of its 52 week range at about $176/share with a dividend payout of about $2.14 (for a yield of 1.22%). At its low end range it would still only have a yield of 1.86%. The expense ratio for this fund is 0.42%. Morningstar rates this fund as average risk with below average returns.

Next we have $IYH that is also trading at its 52 week high range of $242/share while its dividend payout is $2.86 for a yield of 1.19%. The yield would be similar to $IHE if the shares traded at the low end of the 52 week range. Expense ratio of 0.43% with a Morningstar rating of a below average risk and average return.

Lastly, we have $VHT. This fund is also trading at its high end of its 52 week range at about $220/share. The dividend payout is $2.55 (for a yield of 1.16%). Again, if the price dropped to the low end of the 52 week range the yield would be 1.86%, also, like the others. However, the key difference is the expense ratio, While the other funds have their expense ratio north of 0.40%, this fund has an expense ratio of only 0.10%. And the Morningstar rating is below average risk and average return. Similar to $IYH.

I have outlined how I go about reviewing and deciding which ETF to invest in. This may not work for you because you may have a different set of criteria or you may be looking at a different set of data. That’s fine because you are the one that has to decide the best way to invest in your money. I’m not a financial professional and nothing in this post is to be taken as investment advice. If you are unsure of what you need to do or how, seek the advice of a professional.

Even though I tend to lean toward Vanguard ETFs, I did a search of other fund families in order to make sure that I wasn’t locked into my bias toward them. I will probably purchase $VHT when the funds are available and thus will have a position in the healthcare sector. $VHT because of its lower expense ratio. If I had to select a second choice it would probably be $IHE because, even though the expense ratio is 0.40+, it is very slightly lower than the other iShare funds.

But do you own due diligence and make sure that you are the one that is formulating and controlling your investment strategy.

Which Portfolio Mix, Is Best For You?

Guest Article By Richard Brody 

When, it comes to investing, and/ or, personal financial planning, there is no such thing, as, one – size – fits – all! Depending on one’s age, needs, goals, priorities, risk tolerance, purposes, etc, the most appropriate strategy, may be determined, on a case – by – case, basis! Your total assets, liquid assets, income (from a variety of sources), job security, reserves, and personal, comfort zone/ level, are significant factors, to determine, the best path forward, for you, in terms of creating a personal, investment portfolio. With that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, which, mix, might make the most sense, for your specific combination, and set of conditions, and factors.

1. Risk tolerance: One of the first things to consider, is, your personal, risk tolerance. That means, in simple – terms, how might you balance, investing, and being able, to sleep, at night! Many people confuse terms, especially, when it comes to, mixing – up, the difference, between, growth, and income. How often have you heard, someone, declare, the growth – investments, they held, didn’t offer enough income, and/ or, income – focused investments don’t provide growth/ rising prices, etc? One must consider, how much risk, they are ready, willing, and/ or, able, to tolerate, and accept!

2. Goals/ objectives: Identify, clearly, your individual goals, and objectives, when considering your portfolio mix. Some goals, include: saving for a child’s education; creating a source, to purchase a future house; developing a retirement fund; etc. It makes sense, usually, to carefully, choose, the right mix of investments, for each objective. Achieving goals, generally, is easier/ simpler, when done, over a longer – period of time, so one might take advantage of the concept of Dollar Cost Averaging. This approach, often, minimizes overall – market risk, because, when purchases are made, at a specific point, every month, market fluctuation becomes far – less, relevant and significant!

3. Needs: We are individuals, and have our own needs! Avoid, trying to, Keep Up With The Joneses, because, what might make sense, for them, may not, for you, and what you need! Do you need, growth, present income, future income, or some combination, etc?

4. Small, versus, Large – Cap, equity: We often hear the terms, small – cap, versus, large – cap. This refers to the amount of capitalization, of the individual company, investment, or mutual fund. The value, and monetary stability, and strength of any company, may be a factor, in the safety, etc.

5. Bonds and Preferred Stock: Corporate bonds are debt, which companies use, to raise monies/ capital. Some are unsecured ones, but, generally, we consider, secured bonds (debentures), which are backed, by the finances of that company. Therefore, while, many consider, bonds, safe, that depends on, the quality of the specific company. Preferred stocks are generally, favored forms of equity, and pay a regular dividend. Most people, who invest in these two types of investments, seek consistent income. At this point – in – time, because of record – low, interest rates, existing bond prices, are high, because they were issued, when rates were higher, and the price of the bond, is adjusted, because, it determines the total yield.

The more you know, and understand, the better, you will determine the portfolio mix, which might, best serve your individual needs, goals, and priorities. Become a smarter investor!

Richard has owned businesses, been a COO, CEO, Director of Development, consultant, professionally run events, consulted to thousands, conducted personal development seminars, and was involved in financial planning, for 4 decades. Rich has written three books and thousands of articles. His company, PLAN2LEAD, LLC has an informative website http://plan2lead.net and Plan2lead can also be followed on Facebook http://facebook.com/Plan2lead

Article Source: https://EzineArticles.com/expert/Richard_Brody/492539

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Diamond in the Rough?

A couple of years ago I came into a large sum of money. I didn’t want to waste it or just have it sitting around in a bank account while it was pissed away. So I decided I wanted to put the money to work for me. At that time I knew very little about investing and decided to go to my bank to seek out a financial advisor to help me out. As luck would have it my bank was running a promotion where they would deposit a small amount of money into your account if you invested a large amount of money through them.

Well, off I went. Again, knowing very little about investing (except that I didn’t want my money left in a statement account), i discussed my financial goals at the time with my new financial advisor. Since that time my financial goals have changed/evolved. I still am more on the conservative side and prefer safer investments with minimum risks but I also am looking for accelerated (not aggressive) growth. I want stocks & funds that grow but I want them to grow at a faster rate. Which is why I am now participating in DRIPs with all my investments. I prefer dividends be paid as often as possible; prefer monthly, will accept quarterly but reluctantly take semi-annually.

This past April when the last fund expired/matured/closed and liquidated the shares from that fund and invested in a unit trust (FKUVBX). I don’t know anything about these type of funds but the value of it has increased 26.37%. This seems good. Initially, I told my financial advisor (FA) that I wanted to be conservative and to protect my assets. I still do but my thinking that has changed is that I am now interested in compounding my funds. FKUVBX only pays dividends twice a year and I can’t find any information about it other than the value increased. I don’t find that much information on the fund. My normal sources of investment info come up blank and only place I find the ticker FKUVBX is on CNBC.

I know very little about this fund other than it is trading at the high end of its 52 week range. Right now it’s up 26.37% but what companies/industries make up this fund? What’s the dividend rate, if any? I guess I’ll stick with it until the end (2022).