What are these funds? Investment - Fund is difersikuotas stock portfolio, which is managed by a professional investment company, which gets for a fee (royalty). This company buys or sells shares of this fund and to derive a profit or loss, depending on the purchased shares. When you buy shares in the fund you are buying an investment services company, the investment company's investment decision-makers place on your stock market. The mutual fund shares you have to watch other than the ordinary shares. Therefore, the ordinary shares may fall off and never achieved the previous price. For this, you have to be created stop loss rules. Rather good with a good foundation management team at a correction may also fall off, but this is inevitable, because the fund is very difersikuotas and it can so easily get out of the market. Is it worth it to invest in bond funds or balanced? It is advisable not to invest in a better bond or balanced with bond funds. Equity funds almost always outperform bonds funds, so you buy them and you simply downplay At that their results. Large funds Problems Large quantities of many active funds problem. If the Fund has more billion in assets as it will be difficult to sell and buy large amounts of stock. In this case, it will be harder to get out of position or to be purchased shares in demand. Should therefore be avoided very large funds. If you have one of the largest units of the Fund which for years has generated good profits and to this day is everything well, then you probably do not need to change anything. Remember that big money obtained through long periods. Other common errors The typical investor investing in mutual funds try to buy it Fund units that previously had a very successful year. they forget about the fact that the next two years the fund will show much underperformance. And if the economy goes into the fund deceleration phase, the results of such a fund would be not at all what. In such išbaidomi cases are those who are trying to earn quick, or the who have less self-confidence. Some investors (usually at the wrong time) changes in other funds, if any reassure them that other fund or have better results are safer. Transition is acceptable only if you have dealing with a very poorly managed fund or not to fund type, transitions destroys your long accumulated in percentages. Proper investment in mutual funds is one way to get the benefits of growing economies and it is arranging your family and your future. Mutual funds are a very good place to keep their money if you learn use them. However, most investors do not understand and expect from Funds for maximum benefit. First of all, you should be aware of the fact that most Results largest investment funds are obtained with the we are keeping the money a few cycles of the economy (market upswing drop). That is a 10, 15 or 20 years or more. In order to hold out for so long need a lot of patience and self-confidence. This is the same as in real estate. If you buy a house and after a few years of starting nervuotis and want to sell quickly, you You can not only unearned nothing but lose. In order for you to rise cost of ownership, you need time. Here's how my mind would invest in mutual funds for individual investors. You must first choose a wide difersikacijos investment fund whose performance over the last 3-5 the year was better than other funds that invest there. it has have an annual increase of at least 20%. It does not have to be fund who last year was the best (if 100 funds, it should get 25 list). This should be a fund that in the course of many years, compared with the other showed the best results. But it should not be fund the "best of the best", because what today's best tomorrow, perhaps not the best. In order to obtain such the information you need to move a lot of banks and brokerage and unresolved in one day, because you invest for a long time. A lot of business abroad magazines makes such investment fund ratings, while the Baltic countries what such a thing does not exist, so that is where you have to work on themselves, you have to collect a lot of information and a lot of talk with realtors. If the Fund received dividends they give you, you have to reinvest those dividends. The difficult percent magic In order to earn profits in investment funds, you need to learn to count component percentages. The largest percentages are obtained when you we make work more and more money, ie, reinvest their dividends, bonuses and other cash. The more time that passes becomes larger percent of your composite. In order to get the absolute most out of the constituent percent, you should carefully choose the investment fund and that it time to hold your investments. For example, if you buy a mutual fund for 10,000 USD, which on average grow 15% this year over 35 percent of the composite help you get. When is the best to buy mutual fund units? May be purchased at any time. You can not predict when will be the best time to buy units of the Fund at the end and everything that you pay for the Fund's higher price. You only need to take decision to invest and increase their capital complex percent assistance. Is it worth to have a number of mutual fund? Over time, you can decide, after all, need to open up another long-term money-making program. If so you've decided to open it. After 10-15 years you can have a considerable sum of two or three funds, but too much of the not abuse. There is not widely diversified funds. People who have millions portfolios can afford more diversified between funds. If you already have such The need for this you have to choose different styles managed funds. Such as money can be transferred to the aggressive growth funds, medium and small-cap funds, funds investing in small-cap stocks, etc. Most of our BF and banks such as SEB, Hansa, Finasta, the UN, etc. already provides funds to families with a variety of funds for different purposes. In most cases, you will be allowed to move from one fund to another payment of commissions and transfer fee. such transfer in the same family (brokerage firms, banks) may give you additional benefits. Do I need to create a monthly investment plans? Mutual funds that day already has the ability to offer you what month deposit funds into an investment fund account. this would be done automatically every month, retrieving money from your salary. However, it is better to make a big purchase once (monthly transfer than say 100 fr.), because it is much faster a few percent of the composite assistance in raising capital. Do not let the market change your long-term investment opinions The Bear The market may last from six months up to (in rare cases) for two years and more. If you promise to become a long-term investment funds investor, you need the strength and insight to look forward to pergyventumėte that bear markets from time to time. Learn to look into the future, in order that create long-term investment program and follow her. Every time when the economy is in decline newspapers and TV immediately notify the tragedy occurred stock market as the loss of money, etc. In this case, you have think about the cash injection into your fund. when the fund drop from its peak of 30%, you have to make the injection. It is psychologically very difficult because the human brain is seeing money difficult to understand the loss of instruction, an even bigger money deposit. Most of the people doing the opposite. If you are patient, after Fund a few years growth will surprise you. Mutual funds that invest aggressively through Bull markets have climbed more than the overall market, but they also may fall below the overall market will bear market periods. therefore do not worry, instead, try to look for some years to come. Always after dark morning dawns. You as a model, you can also argue that Funds for the purchase of US major depression can be bad times idea, because it would have taken 30 m., that investment would breakeven. However, if pakoreguotume the impact of inflation, the investors invested in 1929. at the top was to alight from loss after 14 m., if we take all of this according to the S & P 500 and DJIA data. If the investors would have bought 1973 shares. peak; that they would be lifted out of the loss after 11 years. If these difficult periods of investors to increase their investment (ie to be bought mutual fund units when he fell, and thus reduce the overall loss), the loss would have been lifted from less than half of the former time. Even in these difficult periods, up to their market funds up and did it very quickly than you might expect. other words, if you were the worst thing we took the twentieth century. period of the Great Depression, and you are by purchasing fund units when they was on top, and in the course of all this you are ready to deposit money in order to reduce losses, your investment would be lifted out of loss after 7m. This is a real proof of the fact that additional fund purchase of units when the price falls is a good investment decision. For many it may appear very confusing, because there are not to recommend the re-purchase of shares when their price falls (in order to reduce losses). The difference lies in the fact that the shares may achieve and 0, while the well difersikuotas and professional managed fund will begin to rise when the overall market will begin to rise. The largest profits in investment funds percent of the composite obtained assistance over the years. The Fund must be your life investment. They say that diamonds are eternal, your funds too. So buy right and follow carefully. A fund worth the investment funds, closed or open? Open funds continuously, continuously enables new units, some people wants to buy them. Fund units are redeemed at the same price, which is set to the current day. Closed end fund will issue a fixed number of background units. The Fund's units are not being spent in addition to the aukcionieriai want to buy them. Sales of units of the Fund held secondary market. Such funds may be quoted even Exchange. Long-term investment is better suited for open-ended funds. Closed-end funds are more capricious and their price may also fall below their book value. And besides Lithuania closed-end funds and as there is no way that I would not mind. The fund is to invest in better "load" or "no-load"? You have selected the fund may be "load" (load fund), where the transition from one fund to another commission charged or levied "no-load" (no-load fund). If you buy units of the fund, which is taken for tax, it's when you sell them, it depends on the size of commissions of the amount you pick it up. Anyway, fund commissions are less than your insurance policy, car or suit. you You can also sign the protocol įsipareigotumėte buy another fund units, which resulted in the commission remains an absolute minimum. US funds have earned a lot of people a lot of money investing in aggressive growth funds, "no load" and using the average of the crawling lines and using the services of companies that claim Funds swap services. However, it is not recommended for most investors to invest in the funds, "no load", so it's easy to make the choice of when to buy and when to sell errors. And once again will stress the need to invest in mutual funds for a long period of time. Is it worth it for you to buy an index fund or sector units? Be followed as far as possible from funds that invest in a farm branch or area. Such funds problem lies in the sectors that are going through the ups and downs. If you've purchased from the fund pieces, you will experience a significant loss of the whole sector will start fall or start a bear market. Of course you can avoid all this if you earn a solid profit fund units sold. However, most of investors do not sell such Units and, finally, finally losing money, so it is advisable not to buy such funds. if you you want to make a million for your help fund the investment must be long-term and difersikuota. Sectoral funds are not intended as a rule long-term goals. One can also choose and Index fund, which consisting of a given index envy such. NSEL 30 fund composed OMXV Index example. Index fund in the long term, bypassing most of the actively managed funds.