Mutual Funds Quotes

We've searched our database for all the quotes and captions related to Mutual Funds. Here they are! All 100 of them:

True love is unconditional. And if it is a 'Conditions Apply' scenari, then it isn't true love. It is as good as a mutual fund...
Ravinder Singh (Can Love Happen Twice?)
Driving back to Portland I’d puzzle over my sudden success at selling. I’d been unable to sell encyclopedias, and I’d despised it to boot. I’d been slightly better at selling mutual funds, but I’d felt dead inside. So why was selling shoes so different? Because, I realized, it wasn’t selling. I believed in running. I believed that if people got out and ran a few miles every day, the world would be a better place, and I believed these shoes were better to run in. People, sensing my belief, wanted some of that belief for themselves. Belief, I decided. Belief is irresistible. Sometimes
Phil Knight (Shoe Dog)
Mutual Funds do not allow for your intellectual growth, Stocks do. And in life, wealth always catches up with your intellect
Manoj Arora (The Autobiography Of A Stock)
The mutual fund industry has been built, in a sense, on witchcraft.
John C. Bogle (Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor)
Half of all U.S. mutual fund portfolio managers do not invest a cent of their own money in their funds, according to Morningstar.69 This might seem atrocious, and surely the statistic uncovers some hypocrisy.
Morgan Housel (The Psychology of Money)
If you keep a $495 car payment throughout your life, which is “normal,” you miss the opportunity to save that money. If you invested $495 per month from age twenty-five to age sixty-five, a normal working lifetime, in the average mutual fund averaging 12 percent (the eighty-year stock market average), you would have $5,881,799.14 at age sixty-five. Hope you like the car!
Dave Ramsey (The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness)
Business deals should be mutually beneficial. Don’t fund other peoples profits with your loss.
Hendrith Vanlon Smith Jr.
And of course Brian was far more upset about separation from those two blond moppets than about leaving Louise. There shouldn't be any problem loving both, but for some reason certain men choose; like good mutual-fund managers minimizing risk while maximizing portfolio yield, they take everything they once invested in their wives and sink it into their children instead. What is it? Do they seem safer, because they need you? Because you can never become their ex-father, as I think I might become your ex-wife?
Lionel Shriver (We Need to Talk About Kevin)
In the mutual fund industry, for example, the annual rate of portfolio turnover for the average actively managed equity fund runs to almost 100 percent, ranging from a hardly minimal 25 percent for the lowest turnover quintile to an astonishing 230 percent for the highest quintile. (The turnover of all-stock-market index funds is about 7 percent.)
John C. Bogle (The Clash of the Cultures: Investment vs. Speculation)
The average monthly student loan payment for someone in their twenties is $351.15 If that student avoided student loans, started his or her career without that payment, and invested that $351 into a mutual fund every month instead, they’d have almost $3 million by age 65.16
Chris Hogan (Everyday Millionaires)
Slavery is not a horror safely confined to the past; it continues to exist throughout the world, even in developed countries like France and the United States. Across the world slaves work and sweat and build and suffer. Slaves in Pakistan may have made the shoes you are wearing and the carpet you stand on. Slaves in the Caribbean may have put sugar in your kitchen and toys in the hands of your children. In India they may have sewn the shirt on your back and polished the ring on your finger. They are paid nothing. Slaves touch your life indirectly as well. They made the bricks for the factory that made the TV you watch. In Brazil slaves made the charcoal that tempered the steel that made the springs in your car and the blade on your lawnmower. Slaves grew the rice that fed the woman that wove the lovely cloth you've put up as curtains. Your investment portfolio and your mutual fund pension own stock in companies using slave labor in the developing world. Slaves keep your costs low and returns on your investments high.
Kevin Bales
Would you believe me if I told you that there’s an investment strategy that a seven-year-old could understand, will take you fifteen minutes of work per year, outperform 90 percent of finance professionals in the long run, and make you a millionaire over time?   Well, it is true, and here it is: Start by saving 15 percent of your salary at age 25 into a 401(k) plan, an IRA, or a taxable account (or all three). Put equal amounts of that 15 percent into just three different mutual funds:   A U.S. total stock market index fund An international total stock market index fund A U.S. total bond market index fund.   Over time, the three funds will grow at different rates, so once per year you’ll adjust their amounts so that they’re again equal. (That’s the fifteen minutes per year, assuming you’ve enrolled in an automatic savings plan.)   That’s it; if you can follow this simple recipe throughout your working career, you will almost certainly beat out most professional investors. More importantly, you’ll likely accumulate enough savings to retire comfortably.
William J. Bernstein (If You Can: How Millennials Can Get Rich Slowly)
Focus on being productive instead of busy.
Hyacil Han (Investing Made Easy: 50 Extremely Beneficial Business that are Undeniable Cash Cows)
The most popular investing products are the worst ones for investors.
Robert Rolih
Rich people's control of nonprofit funding keeps nonprofits from doing work that is threatening to the status quo, or from admitting the limits of their strategies.
Dean Spade (Mutual Aid: Building Solidarity in This Crisis (And the Next))
Being dead is an improvement on a lot of things I can think of. Trying to sell mutual funds, for example.
John Godey (The Taking of Pelham 123)
That’s when I realized it was really very simple. Index investing beats 85 percent of actively managed mutual funds.
Kristy Shen (Quit Like a Millionaire: No Gimmicks, Luck, or Trust Fund Required)
Mandatory allocation of capital between bonds and stocks by mutual funds creates tremendous short-term opportunities for investors.
Naved Abdali
If you invest $464 in a good mutual fund every month from age thirty to age seventy, you’ll end up with more than $5 million.
Dave Ramsey (Dave Ramsey's Complete Guide To Money: The Handbook of Financial Peace University)
Most individual investors would be better off in an index mutual fund.
Peter Lynch
If she were to invest $3,500 in a mutual fund averaging 12 percent, upon an average death age of seventy-eight, Sara’s mutual fund would be worth $368,500!
Dave Ramsey (The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness)
Structural factors are those such as ownership and control, dependence on other major funding sources (notably, advertisers), and mutual interests and relationships between the media and those who make the news and have the power to define it and explain what it means. The propaganda model also incorporates other closely related factors such as the ability to complain about the media’s treatment of news (that is, produce “flak”), to provide “experts” to confirm the official slant on the news, and to fix the basic principles and ideologies that are taken for granted by media personnel and the elite, but are often resisted by the general population.1 In our view, the same underlying power sources that own the media and fund them as advertisers, that serve as primary definers of the news, and that produce flak and proper-thinking experts, also play a key role in fixing basic principles and the dominant ideologies. We believe that what journalists do, what they see as newsworthy, and what they take for granted as premises of their work are frequently well explained by the incentives, pressures, and constraints incorporated into such a structural analysis. These structural factors that dominate media operations are not allcontrolling and do not always produce simple and homogeneous results.
Noam Chomsky (Manufacturing Consent: The Political Economy of the Mass Media)
Even for taxable clients, mutual fund managers supervised the assets in very much the same way, simply ignoring the tax impact and passing the tax liability through to largely unsuspecting fund shareholders.
John C. Bogle (The Clash of the Cultures: Investment vs. Speculation)
Diversification, the easy accessibility of funds, and having a skilled professional money manager working to make your investment grow are the three most prominent reasons that mutual funds have become so popular.
Michele Cagan (Investing 101: From Stocks and Bonds to ETFs and IPOs, an Essential Primer on Building a Profitable Portfolio (Adams 101 Series))
for a large majority of fund managers, the selection of stocks is more like rolling dice than like playing poker. Typically at least two out of every three mutual funds underperform the overall market in any given year.
Daniel Kahneman (Thinking, Fast and Slow)
Bogle’s brilliance, for us investors, was to shift the ownership of his new company to the mutual funds it operates. Since we investors own those funds, through our ownership of shares in them, we in effect own Vanguard.
J.L. Collins (The Simple Path to Wealth: Your road map to financial independence and a rich, free life)
With real assets, everything is different. The price of real estate, like the price of shares of stock or parts of a company or investments in a mutual fund, generally rises at least as rapidly as the consumer price index.
Thomas Piketty (Capital in the Twenty-First Century)
Investment Owner’s Contract I, _____________ ___________________, hereby state that I am an investor who is seeking to accumulate wealth for many years into the future. I know that there will be many times when I will be tempted to invest in stocks or bonds because they have gone (or “are going”) up in price, and other times when I will be tempted to sell my investments because they have gone (or “are going”) down. I hereby declare my refusal to let a herd of strangers make my financial decisions for me. I further make a solemn commitment never to invest because the stock market has gone up, and never to sell because it has gone down. Instead, I will invest $______.00 per month, every month, through an automatic investment plan or “dollar-cost averaging program,” into the following mutual fund(s) or diversified portfolio(s): _________________________________, _________________________________, _________________________________. I will also invest additional amounts whenever I can afford to spare the cash (and can afford to lose it in the short run). I hereby declare that I will hold each of these investments continually through at least the following date (which must be a minimum of 10 years after the date of this contact): _________________ _____, 20__. The only exceptions allowed under the terms of this contract are a sudden, pressing need for cash, like a health-care emergency or the loss of my job, or a planned expenditure like a housing down payment or a tuition bill. I am, by signing below, stating my intention not only to abide by the terms of this contract, but to re-read this document whenever I am tempted to sell any of my investments. This contract is valid only when signed by at least one witness, and must be kept in a safe place that is easily accessible for future reference.
Benjamin Graham (The Intelligent Investor)
Do not ridicule my effort. Everybody likes a comedian’s company. That’s why they give them tips after watching the show, not their hard earned money for a mutual fund investment. Give him tips, not your heart. I guess you understand the difference.
Ravindra Shukla (A Maverick Heart: Between Love and Life)
Failure to use tax money to finance things not liked by the taxpaying public is routinely called ‘censorship.’ If such terminology were used consistently, virtually all of life would be just one long, unending censorship, as individuals choose whether to buy apples instead of oranges, vacations rather than violins, furniture rather than mutual funds. But of course no such consistency is intended. This strained use of the word ‘censorship’ appears only selectively, to describe public choices and values at variance with the choices and values of the anointed.
Thomas Sowell (The Vision of the Anointed: Self-Congratulation as a Basis for Social Policy)
The simple fact is that selecting a mutual fund that will outpace the stock market over the long term is, using Cervantes’ wonderful observation, like “looking for a needle in the haystack.” So I offer you Bogle’s corollary: “Don’t look for the needle in the haystack. Just buy the haystack!
John C. Bogle (The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns (Little Books. Big Profits 21))
Rich people think long-term. they balance their spending on enjoyment today with investing for freedom tommorow
Hyacil Han
Rich people think long term. they balance their spending on enjoyment today with investing fore freedom tomorrow.
Hyacil Han (Investing Made Easy: 50 Extremely Beneficial Business that are Undeniable Cash Cows)
The greatest fear of a professional investor, who manages money for a living, is capital withdrawals at the wrong time.
Naved Abdali
Money managers tend to make irrational decisions just to protect their calendar year performances, even if they believe that decision is not in the best interest of investors.
Naved Abdali
Annual performance means nothing to individual investors.
Naved Abdali
Opportunities don't just happen. You create them
Hyacil Han (Investing Made Easy: 50 Extremely Beneficial Business that are Undeniable Cash Cows)
Most of us know how much we earn every month, but not many of us are clear about where our money gets spent. This exercise should show you clearly how you should manage your finances to achieve your goals.
Vinod Pottayil (What Every Indian Should Know Before Investing: Investment ideas on Gold, PPF, Stocks, Mutual Fund, Life Insurance and more... explained in simple, easy-to-understand language for Indian investors!)
The index fund is a most unlikely hero for the typical investor. It is no more (nor less) than a broadly diversified portfolio, typically run at rock-bottom costs, without the putative benefit of a brilliant, resourceful, and highly skilled portfolio manager. The index fund simply buys and holds the securities in a particular index, in proportion to their weight in the index. The concept is simplicity writ large.
John C. Bogle (Common Sense on Mutual Funds)
Truth doesn’t screw around, and truth doesn’t care about your opinions. It doesn’t care if you believe in it, deny it, or ignore it. It couldn’t care less what religion you are, what country you’re from, what color your skin is, what or who you’ve got between your legs, or how much you’ve got invested in mutual funds. None of the trivial junk that concerns most people most of the time matters even one teensy-weensy bit to the truth.
Brad Warner (Hardcore Zen: Punk Rock, Monster Movies and the Truth About Reality)
Mutual funds are run by highly experienced and hardworking professionals who buy and sell stocks to achieve the best possible results for their clients. Nevertheless, the evidence from more than fifty years of research is conclusive: for a large majority of fund managers, the selection of stocks is more like rolling dice than like playing poker. Typically at least two out of every three mutual funds underperform the overall market in any given year.
Daniel Kahneman (Thinking, Fast and Slow)
The creation of Vanguard and its truly mutual (fund-shareholder-owned) structure has been the so-far-single counterexample to this pattern. I explain why this structure has worked so well, and why it must ultimately become the dominant structure in the industry.
John C. Bogle (The Clash of the Cultures: Investment vs. Speculation)
One of the problems with a 529 plan is that you must give up an element of control. The best 529 plans available, and my second choice to an ESA, is a “flexible” plan. This type of plan allows you to move your investment around periodically within a certain family of funds. A family of funds is a brand name of mutual fund. You could pick from virtually any mutual fund in the American Funds Group or Vanguard or Fidelity. You are stuck in one brand, but you can choose the type of fund, the amount in each, and move it around if you want. This is the only type of 529 I recommend.
Dave Ramsey (The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness)
The idea that a bell rings to signal when investors should get into or out of the market is simply not credible. After nearly 50 years in this business, I do not know of anybody who has done it successfully and consistently. I don't even know anybody who knows anybody who has done it successfully and consistently.
John C. Bogle (Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor)
Warren Buffett, quoting Henry Ford, often talks about the importance of keeping all your eggs in one basket, then watching that basket very carefully. One thing that appalled me and that I’d seen too many times was the Wall Street practice of having many eggs in many baskets. Even the most reputable mutual fund companies have a practice of selling multiple funds. The ones that do well are those that then get the marketing dollars and raise more money from investors. The ones that do poorly are either shut down or merged into the better-performing funds. In the process, the failures are buried as if they’d never existed while
Guy Spier (The Education of a Value Investor: My Transformative Quest for Wealth, Wisdom, and Enlightenment)
Here’s a Reader’s Digest version of my approach. I select mutual funds that have had a good track record of winning for more than five years, preferably for more than ten years. I don’t look at their one-year or three-year track records because I think long term. I spread my retirement, investing evenly across four types of funds. Growth and Income funds get 25 percent of my investment. (They are sometimes called Large Cap or Blue Chip funds.) Growth funds get 25 percent of my investment. (They are sometimes called Mid Cap or Equity funds; an S&P Index fund would also qualify.) International funds get 25 percent of my investment. (They are sometimes called Foreign or Overseas funds.) Aggressive Growth funds get the last 25 percent of my investment. (They are sometimes called Small Cap or Emerging Market funds.) For a full discussion of what mutual funds are and why I use this mix, go to daveramsey.com and visit MyTotalMoneyMakeover.com. The invested 15 percent of your income should take advantage of all the matching and tax advantages available to you. Again, our purpose here is not to teach the detailed differences in every retirement plan out there (see my other materials for that), but let me give you some guidelines on where to invest first. Always start where you have a match. When your company will give you free money, take it. If your 401(k) matches the first 3 percent, the 3 percent you put in will be the first 3 percent of your 15 percent invested. If you don’t have a match, or after you have invested through the match, you should next fund Roth IRAs. The Roth IRA will allow you to invest up to $5,000 per year, per person. There are some limitations as to income and situation, but most people can invest in a Roth IRA. The Roth grows tax-FREE. If you invest $3,000 per year from age thirty-five to age sixty-five, and your mutual funds average 12 percent, you will have $873,000 tax-FREE at age sixty-five. You have invested only $90,000 (30 years x 3,000); the rest is growth, and you pay no taxes. The Roth IRA is a very important tool in virtually anyone’s Total Money Makeover. Start with any match you can get, and then fully fund Roth IRAs. Be sure the total you are putting in is 15 percent of your total household gross income. If not, go back to 401(k)s, 403(b)s, 457s, or SEPPs (for the self-employed), and invest enough so that the total invested is 15 percent of your gross annual pay. Example: Household Income $81,000 Husband $45,000 Wife $36,000 Husband’s 401(k) matches first 3%. 3% of 45,000 ($1,350) goes into the 401(k). Two Roth IRAs are next, totaling $10,000. The goal is 15% of 81,000, which is $12,150. You have $11,350 going in. So you bump the husband’s 401(k) to 5%, making the total invested $12,250.
Dave Ramsey (The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness)
I suggest a Money Market account with no penalties and full check-writing privileges for your emergency fund. We have a large emergency fund for our household in a mutual-fund company Money Market account. Wherever you get your mutual funds, look at the website to find Money Market accounts that pay interest equal to one-year CDs. I haven’t found bank Money Market accounts to be competitive. The FDIC does not insure the mutual-fund Money Market accounts, but I keep mine there anyway because I’ve never known one to fail. Keep in mind that the interest earned is not the main thing. The main thing is that the money is available to cover emergencies. Your wealth building is not going to happen in this account; that will come later, in other places. This account is more like insurance against rainy days than it is investing.
Dave Ramsey (The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness)
In Lebanon, home to well over a million Syrian refugees, the UN Refugee Agency (UNHCR) decided to use its limited ‘winterization’ funds to pay cash transfers to vulnerable families living above 500 metres altitude. These were unconditional, although recipients were told they were intended for buying heating supplies. Recipient families were then compared with a control group living just below 500 metres. The researchers found that cash assistance did lead to increased spending on fuel supplies, but it also boosted school enrolment, reduced child labour and increased food security.55 One notable finding was that the basic income tended to increase mutual support between beneficiaries and others in the community, reduced tension within recipient families, and improved relationships with the host community. There were significant multiplier effects, with each dollar of cash assistance generating more than $2 for the Lebanese economy, most of which was spent locally.
Guy Standing (Basic Income: And How We Can Make It Happen)
This state of affairs, which bodes ill for the future, causes Us great distress and anguish. But We cherish this hope: that distrust and selfishness among nations will eventually be overcome by a stronger desire for mutual collaboration and a heightened sense of solidarity. We hope that the developing nations will take advantage of their geographical proximity to one another to organize on a broader territorial base and to pool their efforts for the development of a given region. We hope that they will draw up joint programs, coordinate investment funds wisely, divide production quotas fairly, and exercise management over the marketing of these products. We also hope that multilateral and broad international associations will undertake the necessary work of organization to find ways of helping needy nations, so that these nations may escape from the fetters now binding them; so that they themselves may discover the road to cultural and social progress, while remaining faithful to the native genius of their land.
Pope Paul VI (On the Development of Peoples: Populorum Progressio)
MYTH: Car payments are a way of life; you’ll always have one. TRUTH: Staying away from car payments by driving reliable used cars is what the average millionaire does; that is how he or she became a millionaire. Taking on a car payment is one of the dumbest things people do to destroy their chances of building wealth. The car payment is most folks’ largest payment except for their home mortgage, so it steals more money from the income than virtually anything else. The Federal Reserve notes that the average car payment is $495 over sixty-four months. Most people get a car payment and keep it throughout their lives. As soon as a car is paid off, they get another payment because they “need” a new car. If you keep a $495 car payment throughout your life, which is “normal,” you miss the opportunity to save that money. If you invested $495 per month from age twenty-five to age sixty-five, a normal working lifetime, in the average mutual fund averaging 12 percent (the eighty-year stock market average), you would have $5,881,799.14 at age sixty-five. Hope you like the car!
Dave Ramsey (The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness)
IRA funds became a form of play money for the middle class... Because the pool of capital that made up an IRA could not be withdrawn for twenty or thirty years, many people viewed their IRAs as containing money they could experiment with. They could use an IRA to buy their first stock or their first mutual fund. They could put in in a money market fund first, and then, as they got bolder - and the bull market became more irresistible - shift some of it into something a little riskier. IRAs gave people a way to try on the stock and bond markets for size, to see how they felt, and to become slowly comfortable with the idea of investing. The knowledge that the money couldn't easily be withdrawn acted as a psychological safety net, allowing investors to feel as though they could take a chance or two. If they made a mistake, they reasoned, there was still time to recoup - several decades, perhaps.Over time, many people came to believe that it as imperative to maximize the returns they were getting on their IRA account, even at the risk of taking a loss. How else would they ever have enough to retire on? This, surely, is the classic definition of investment capital.
Joe Nocera (A Piece of the Action: How the Middle Class Joined the Money Class)
Strategy involves creating “fit” among a company’s activities. Fit has to do with the ways a company’s activities interact and reinforce one another. For example, Vanguard Group aligns all of its activities with a low-cost strategy; it distributes funds directly to consumers and minimizes portfolio turnover. Fit drives both competitive advantage and sustainability: when activities mutually reinforce each other, competitors can’t easily imitate them. When Continental Lite tried to match a few of Southwest Airlines’ activities, but not the whole interlocking system, the results were disastrous.
Michael E. Porter (HBR's 10 Must Reads on Strategy)
suggest funding college, or at least the first step of college, with an Educational Savings Account (ESA), funded in a growth-stock mutual fund. The Educational Savings Account, nicknamed the Education IRA, grows tax-free when used for higher education. If you invest $2,000 a year from birth to age eighteen in prepaid tuition, that would purchase about $72,000 in tuition, but through an ESA in mutual funds averaging 12 percent, you would have $126,000 tax-free. The ESA currently allows you to invest $2,000 per year, per child, if your household income is under $220,000 per year. If you start investing early, your child can go to virtually any college if you save $166.67 per month ($2,000/year). For most of you, Baby Step Five is handled if you start an ESA fully funded and your child is under eight. If your children are older, or you have aspirations of expensive schools, graduate school, or PhD programs that you pay for, you will have to save more than the ESA will allow. I would still start with the ESA if the income limits don’t keep you out. Start with the ESA because you can invest it anywhere, in any fund or any mix of funds, and change it at will. It is the most flexible, and you have the most control.
Dave Ramsey (The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness)
Data sliced sufficiently finely begin once again to tell stories. The top 1 percent of the income distribution—representing household incomes in excess of roughly $475,000—comprises only about 1.5 million households. If one adds up the numbers of vice presidents or above at S&P 1500 companies (perhaps 250,000), professionals in the finance sector, including in hedge funds, venture capital, private equity, investment banking, and mutual funds (perhaps 250,000), professionals working at the top five management consultancies (roughly 60,000), partners at law firms whose profits per partner exceed $400,000 (roughly 25,000), and specialist doctors (roughly 500,000), this yields perhaps 1 million people. These are surely not all one-percenters, but they are all plausibly parts of the top 1 percent, and this group might comprise half—a sizable share—of 1 percent households overall. At the very least, the people in these known and named jobs constitute a material, rather than just marginal or eccentric, part of the top 1 percent of the income distribution. They are also, of course, the people depicted in journalistic accounts of extreme jobs—the people who regularly cancel vacation plans, spend most of their time on the road, live in unfurnished luxury apartments, and generally subsume themselves in work, encountering their personal lives only occasionally, and as strangers.
Daniel Markovits (The Meritocracy Trap: How America's Foundational Myth Feeds Inequality, Dismantles the Middle Class, and Devours the Elite)
Then came the so-called flash crash. At 2:45 on May 6, 2010, for no obvious reason, the market fell six hundred points in a few minutes. A few minutes later, like a drunk trying to pretend he hadn’t just knocked over the fishbowl and killed the pet goldfish, it bounced right back up to where it was before. If you weren’t watching closely you could have missed the entire event—unless, of course, you had placed orders in the market to buy or sell certain stocks. Shares of Procter & Gamble, for instance, traded as low as a penny and as high as $100,000. Twenty thousand different trades happened at stock prices more than 60 percent removed from the prices of those stocks just moments before. Five months later, the SEC published a report blaming the entire fiasco on a single large sell order, of stock market futures contracts, mistakenly placed on an exchange in Chicago by an obscure Kansas City mutual fund. That explanation could only be true by accident, because the stock market regulators did not possess the information they needed to understand the stock markets. The unit of trading was now the microsecond, but the records kept by the exchanges were by the second. There were one million microseconds in a second. It was as if, back in the 1920s, the only stock market data available was a crude aggregation of all trades made during the decade. You could see that at some point in that era there had been a stock market crash. You could see nothing about the events on and around October 29, 1929.
Michael Lewis (Flash Boys: A Wall Street Revolt)
If you were to assume that many experts use their information to your detriment, you’d be right. Experts depend on the fact that you don’t have the information they do. Or that you are so befuddled by the complexity of their operation that you wouldn’t know what to do with the information if you had it. Or that you are so in awe of their expertise that you wouldn’t dare challenge them. If your doctor suggests that you have angioplasty — even though some current research suggests that angioplasty often does little to prevent heart attacks — you aren’t likely to think that the doctor is using his informational advantage to make a few thousand dollars for himself or his buddy. But as David Hillis, an interventional cardiologist at the University of Texas Southwestern Medical Center in Dallas, explained to the New York Times, a doctor may have the same economic incentives as a car salesman or a funeral director or a mutual fund manager: “If you’re an invasive cardiologist and Joe Smith, the local internist, is sending you patients, and if you tell them they don’t need the procedure, pretty soon Joe Smith doesn’t send patients anymore.” Armed with information, experts can exert a gigantic, if unspoken, leverage: fear. Fear that your children will find you dead on the bathroom floor of a heart attack if you do not have angioplasty surgery. Fear that a cheap casket will expose your grandmother to a terrible underground fate. Fear that a $25,000 car will crumple like a toy in an accident, whereas a $50,000 car will wrap your loved ones in a cocoon of impregnable steel.
Steven D. Levitt (Freakonomics: A Rogue Economist Explores the Hidden Side of Everything)
In May 1981, Yuri Andropov, chairman of the KGB, gathered his senior officers in a secret conclave to issue a startling announcement: America was planning to launch a nuclear first strike, and obliterate the Soviet Union. For more than twenty years, a nuclear war between East and West had been held at bay by the threat of mutually assured destruction, the promise that both sides would be annihilated in any such conflict, regardless of who started it. But by the end of the 1970s the West had begun to pull ahead in the nuclear arms race, and tense détente was giving way to a different sort of psychological confrontation, in which the Kremlin feared it could be destroyed and defeated by a preemptive nuclear attack. Early in 1981, the KGB carried out an analysis of the geopolitical situation, using a newly developed computer program, and concluded that “the correlation of world forces” was moving in favor of the West. Soviet intervention in Afghanistan was proving costly, Cuba was draining Soviet funds, the CIA was launching aggressive covert action against the USSR, and the US was undergoing a major military buildup: the Soviet Union seemed to be losing the Cold War, and, like a boxer exhausted by long years of sparring, the Kremlin feared that a single, brutal sucker punch could end the contest. The KGB chief’s conviction that the USSR was vulnerable to a surprise nuclear attack probably had more to do with Andropov’s personal experience than rational geopolitical analysis. As Soviet ambassador to Hungary in 1956, he had witnessed how quickly an apparently powerful regime might be toppled. He had played a key role in suppressing the Hungarian Uprising. A dozen years later, Andropov again urged “extreme measures” to put down the Prague Spring. The “Butcher of Budapest” was a firm believer in armed force and KGB repression. The head of the Romanian secret police described him as “the man who substituted the KGB for the Communist Party in governing the USSR.” The confident and bullish stance of the newly installed Reagan administration seemed to underscore the impending threat. And so, like every genuine paranoiac, Andropov set out to find the evidence to confirm his fears. Operation RYAN (an acronym for raketno-yadernoye napadeniye, Russian for “nuclear missile attack”) was the biggest peacetime Soviet intelligence operation ever launched.
Ben Macintyre (The Spy and the Traitor: The Greatest Espionage Story of the Cold War)
Chang came in five minutes later, in the same jeans but a fresh T-shirt, her hair still inky with water from the shower. Her own jacket was pulled down on one side, by her own Smith. Like any ex-cop she looked around, the full 360, seven or eight separate snapshots, and then she moved through the room with plenty of energy, powered by what looked like enthusiasm, or maybe some kind of shared euphoria at their mutual survival through the night. She slid in alongside him. He said, “Did you sleep?” She said, “I must have. I didn’t think I was going to.” “You didn’t go meet the train.” “He’s a prisoner, according to you. And that’s the best-case scenario.” “I’m only guessing.” “It’s a reasonable assumption.” “Did you see the woman in 203?” “I thought she was hard to explain. Dressed in black, she could have been an investor or a fund manager or something else deserving of the junior executive routine. Her face and hair were right. And she has a key to the company gym. That’s for sure. But dressed in white? She looked like she was going to a garden party in Monte Carlo. At seven o’clock in the morning. Who does that?” “Is it a fashion thing? Someone’s idea of summer clothes?” “I sincerely hope not.
Lee Child (Make Me (Jack Reacher, #20))
The math is revealing. The typical American with a $50,000 annual income would normally have an $850 house payment and a $495 car payment, with an additional $180 payment on the second car. Then there is a $165 student-loan payment; and the average credit-card debt is about $12,000, making those monthly payments around $185 per month. Also, this typical household will have other miscellaneous debt on things like furniture, stereos, or personal loans on which they pay an additional $120. All these payments total $1,995 per month. If this family were to invest that instead of sending it to the creditors, they would be cash mutual-fund millionaires in just fifteen years! (After fifteen years, it gets really exciting. They’ll have $2 million in five more years, $3 million in three more years, $4 million in two and a half more years, and $5.5 million in two more years. So they will have $5.5 million after twenty-eight years.) Keep in mind, this is with an average income, which means many of you make more than this! If you are thinking that you don’t have that many payments so your math won’t work, you missed the point. If you make $50,000 and have fewer payments, you have a head start, since you already have more control of your income than most people.
Dave Ramsey (The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness)
Found a startup society. This is simply an online community with aspirations of something greater. Anyone can found one, just like anyone can found a company or cryptocurrency.2 And the founder’s legitimacy comes from whether people opt to follow them. Organize it into a group capable of collective action. Given a sufficiently dedicated online community, the next step is to organize it into a network union. Unlike a social network, a network union has a purpose: it coordinates its members for their mutual benefit. And unlike a traditional union, a network union is not set up solely in opposition to a particular corporation, so it can take a variety of different collective actions.3 Unionization is a key step because it turns an otherwise ineffective online community into a group of people working together for a common cause. Build trust offline and a cryptoeconomy online. Begin holding in-person meetups in the physical world, of increasing scale and duration, while simultaneously building an internal economy using cryptocurrency. Crowdfund physical nodes. Once sufficient trust has been built and funds have been accumulated, start crowdfunding apartments, houses, and even towns to bring digital citizens into the physical world within real co-living communities. Digitally connect physical communities. Link these physical nodes together into a network archipelago, a set of digitally connected physical territories distributed around the world. Nodes of the network archipelago range from one-person apartments to in-person communities of arbitrary size. Physical access is granted by holding a web3 cryptopassport, and mixed reality is used to seamlessly link the online and offline worlds. Conduct an on-chain census. As the society scales, run a cryptographically auditable census to demonstrate the growing size of your population, income, and real-estate footprint. This is how a startup society proves traction in the face of skepticism. Gain diplomatic recognition. A startup society with sufficient scale should eventually be able to negotiate for diplomatic recognition from at least one pre-existing government, and from there gradually increased sovereignty, slowly becoming a true network state.
Balaji S. Srinivasan (The Network State: How To Start a New Country)
I sometimes wish I could hire toy-motivated children to sell mutual funds.)
Kevin O'Leary (Cold Hard Truth On Men, Women, and Money: 50 Common Money Mistakes and How to Fix Them)
Good news is extrapolated into strong market expectations which are often not realized. As important, investor expectations are negatively correlated with model-based expected returns derived from dividend/price, consumption patterns and market valuation.  Investors, no matter what the level of experience, do not seem to use the models that provide useful information on expected returns. Put differently, when expected return models forecast higher returns, they are usually correct. When the expectations of returns are high from surveys, the actual returns are low. These market expectations are correlated with mutual fund flows. The surveys show expectation that investors actually use, albeit incorrectly.
Anonymous
In my world, real assets fall into several different categories: 1. Businesses that do not require my presence. I own them, but they are managed or run by other people. If I have to work there, it's not a business. It becomes my job. 2. Stocks. 3. Bonds. 4. Mutual funds. 5. Income-generating real estate. 6. Notes (lOUs). 7. Royalties from intellectual property such as music, scripts, patents. 8. And anything else that has value, produces income or appreciates and has a ready market.
Anonymous
Not only will the vast majority (96%) of actively managed mutual funds not beat the market, they are going to charge us an arm and leg, and extract up to two-thirds of our potential nest egg in fees. But here is the kicker: they are going to have the nerve to look you in the eye and tell you that they truly have your best interests at heart while simultaneously lobbying Congress to make sure that is never the case.
Anthony Robbins (MONEY Master the Game: 7 Simple Steps to Financial Freedom (Tony Robbins Financial Freedom))
The average plan administrator charges 1.3% to 1.5% annually (according to the nonpartisan Government Accountability Office). That’s $1,300 for every $100,000 just to participate in the 401(k). So when you add this 1.3% for the plan administration to the total mutual fund costs of 3.17%, it
Anthony Robbins (MONEY Master the Game: 7 Simple Steps to Financial Freedom (Tony Robbins Financial Freedom))
Surprise, the returns reported by mutual funds aren’t actually earned by investors.
Anthony Robbins (MONEY Master the Game: 7 Simple Steps to Financial Freedom (Tony Robbins Financial Freedom))
9Among the many lessons that merge from the geologic record, perhaps the most sobering is that in life, as in mutual funds, past performance is no guarantee of future results.
Elizabeth Kolbert
Among the many lessons that merge from the geologic record, perhaps the most sobering is that in life, as in mutual funds, past performance is no guarantee of future results.
Elizabeth Kolbert
The casino magnate Sheldon Adelson would pour at least $60 million into the 2012 election, seeking in part to protect foreign tax shelters worth billions. Super PAC spending via the Wyoming mutual-fund honcho Foster Friess was said to have powered Rick Santorum’s upset win in the Iowa caucuses, which in turn kept Santorum going for months. Not since the Gilded Age had a handful of super-rich individuals so easily used their fortunes to fuel the presidential ambitions of a few people so radically out of the mainstream of American politics.
Robert B. Reich (Beyond Outrage: Expanded Edition: What has gone wrong with our economy and our democracy, and how to fix it)
Only 20 percent of nonindex mutual funds investing in U.S. stocks beat their benchmarks in 2014.
Anonymous
Nearly anyone with money in the stock market since 2009 has benefited from the great bull market run. But compared with the overall market, most actively managed stock mutual funds haven’t performed very well or very consistently. Exactly how the funds stack up will depend on the precise measurements you use. If you use the definitions and updated results of a study that I reported on last month, actively managed stock funds as a group look quite weak. In fact, in the six years through March, they did worse than you would have expected if their managers had flipped coins instead of picking stocks. That study,
Anonymous
Jill buys an index mutual fund that tracks the overall stock market, never touching her money and earning the same return as the overall stock market. Average Joe "tinkers" with his portfolio, purchasing some mutual funds through his financial advisor and investing in stocks whenever he gets a particularly juicy tip from his neighbor. Joe earns the same return as the average investor in the stock market.
Alex Frey (A Beginner's Guide to Investing: How to Grow Your Money the Smart and Easy Way)
Why do investors fail to realize that money placed in a mutual fund that tries to pick “out-performing stocks” is unlikely to yield a better return than money invested in the S&P 500? If fund managers and investment advisers are so good at picking stocks, why are they risking your money rather than their own? Some
Joseph E. Stiglitz (The Roaring Nineties: A New History of the World's Most Prosperous Decade)
Given the inefficiency of the Indian bureaucracy to effectively implement national objectives, a possible approach (as suggested by Prof. Kelkar once), to salvage the existing PSEs (including all its stakeholders) and to protect the State’s investment in them, would be to transfer all Government’s share in all PSEs to a holding company set up under the Disinvestment Act, at once. 8.4.4 Government should disinvest majority of its share (55 %) in the holding company to Indian mutual funds, and insurance companies through the book-building route, twenty per cent of its share to small investors through IPO (Initial Public Offer), five percent of its share to foreign institutional investors, ten per cent of its share through ADR/GDR in the foreign capital market (this would lead to improved corporate governance as listing in foreign markets, particularly NYSE has stringent requirements), and retain just ten per cent of share in the holding company. 8.4.5 The holding company should be managed by a reputed professional board (initially appointed by the Government through wide consultations and subsequently confirmed by the shareholders of the holding company). The Board would be responsible to its shareholders. The Board of the individual PSEs (which would no longer be a PSE as they would become subsidiaries of the holding private company) would be appointed by the holding company and be responsible to the Board of the holding company.
SANJEEV MISHRA (INDIA'S DISINVESTMENT STORY: Relaunch with Lessons Learnt?)
A recent study by Morningstar Mutual Funds—to its credit, one of the few publications that systematically tackles issues like this one—concluded essentially that owning more than four randomly chosen equity funds didn’t reduce risk appreciably. Around that number, risk remains fairly constant, all the way out to 30 funds (an unbelievable number!), at which point Morningstar apparently stopped counting.
John C. Bogle (Common Sense on Mutual Funds)
The problem is that the managers of the mutual funds make more money when they gather huge piles of assets and charge high fees. The high fees are in direct conflict with the goal of producing high returns. And so what happens over and over again is the profits win and the investor seeking returns loses. There
Anthony Robbins (MONEY Master the Game: 7 Simple Steps to Financial Freedom (Tony Robbins Financial Freedom))
The mutual-fund industry sits at the center of a massive market failure. The asymmetry between sophisticated institutional providers of investment management services and unsophisticated individual consumers results in a monumental transfer of wealth from individual to institution.
David F. Swensen (Unconventional Success: A Fundamental Approach to Personal Investment)
For a simple, hands-free investment experience, invest in lifecycle mutual funds. Choose a low-cost, target-date fund like Vanguard Target Retirement 2050 Fund. Avoid actively managed mutual funds; these funds rarely beat the market. Not only that, but high fees will eat into your investment returns over a long period of time. You are better off choosing a low-cost index fund as described above.
C.J. Carlsen (Everything You Need to Know About Personal Finance in 1000 Words)
The investment through gold ETF or gold mutual funds is not subject to wealth tax or the Security Transaction Tax (STT).
Jigar Patel (NRI Investments and Taxation: A Small Guide for Big Gains)
For example, Mr. Jiten from Dubai has Rs. 100,000 to invest but has no finance or investment experience and wishes to hire an investment manager to manage his investments fulltime. However, he may not be able to afford one due to either limited amount of money or the fact that  the investment manager may not be interested as he would not be employed full time. If he joins other 9999 investors having Rs. 100,000 each and all having the same investment objectives, with Rs.1,000,000,000, they would be in a position to hire the best investment manager. This is the concept of a mutual fund.
Jigar Patel (NRI Investments and Taxation: A Small Guide for Big Gains)
Mutual fund Investments have Capital Protection Plans, Fixed Maturity Plans (FMP) or Liquid or Money market schemes that invest very conservatively to protect the capital.
Jigar Patel (NRI Investments and Taxation: A Small Guide for Big Gains)
The five major sources of income which are exempt for NRIs are: Proceeds from Life Insurance Policy - provided the policy complies with the exemption criteria/conditions Dividend from a domestic company or mutual fund scheme - provided the company or mutual fund scheme has paid the Dividend Distribution Tax (DDT), if applicable Interest on an NRE account – provided the NRE account is maintained as per the FEMA rules Interest on FCNR or RFC accounts – provided the account owner is a non-resident or RBNOR under the Income Tax Act Long Term Capital Gain on equity and equity based mutual fund – provided the Security Transaction Tax (STT) has been paid
Jigar Patel (NRI Investments and Taxation: A Small Guide for Big Gains)
Sec. Particulars Amount 80C Tax saving investments1 Maximum up to Rs. 1,50,000 (from FY 2014-15) 80D Medical insurance premium-self, family Individual: Rs. 15,000 Senior Citizen: Rs. 20,000 Preventive Health Check-up Rs. 5,000 80E Interest on Loan for Higher Education Interest amount (8 years) 80EE Deduction of Interest of Housing Loan2 Up to Rs.1,00,000 total 80G Charitable Donation 100%/ 50% of donation or 10% of adjusted total income, whichever is less 80GGC Donation to political parties Any sum contributed (Other than Cash) 80TTA Interest on savings account Rs. 10,000 1              Tax saving investments includes life insurance premium including ULIPs, PPF, 5 year tax saving FD, tuition fees, repayment of housing loan, mutual fund (ELSS) (Sec. 80CCB), NSC, employee provident fund, pension fund (Sec. 80CCC) or pension scheme (Sec. 80CCD), etc. NRIs are not allowed to invest in certain investments, such as PPF, NSC, 5 year bank FD, etc. 2              Only to the first time buyer of a self-occupied residential flat costing less than Rs. 40 lakhs and loan amount of less than 25 lakhs sanctioned in financial year 2013-14 Clubbing of other’s income Generally, the taxpayer is taxed on his own income. However, in certain cases, he may have to pay tax on another person’s income.  Taxpayers in the higher tax bracket (e.g. 30%) may divert some portion
Jigar Patel (NRI Investments and Taxation: A Small Guide for Big Gains)
Mutual fund Investments have Capital Protection Plans, Fixed Maturity Plans (FMP) or Liquid or Money market schemes that invest
Jigar Patel (NRI Investments and Taxation: A Small Guide for Big Gains)
As of August 31, 2014, only 28% of AUM (asset under management) of all mutual funds in India is in equity, balanced and ELSS schemes, i.e. in high risky securities. Income funds (medium risk) have 46% of all AUM and liquid or money market funds (low risk) have about 24% of AUM. The remaining 2% of AUM is for investment in gold, government securities, overseas funds, etc. AUM is the total market value of all financial assets under a MF or a MF scheme managed on behalf of its clients or investors.
Jigar Patel (NRI Investments and Taxation: A Small Guide for Big Gains)
Mutual Fund Investments are not transparent: In India, SEBI regulates MFs. The money market MFs are regulated by RBI. There are restrictions as to the sponsor, board of trustees, asset management company, custodian, registrar, dealing with brokers, etc. The investment objective, fund manager, entry and exit loads, AUM, expense ratio and other terms and conditions are already known and provided in the SAI. Also, every MF scheme is required to publish a fact sheet on a quarterly/monthly basis that includes all the important facts that an investor would need to know about the scheme including portfolio holdings, past returns, performance ratios and dividends. Also, information relating to what’s in (bought) and what’s out (sold) by mutual funds is also available.
Jigar Patel (NRI Investments and Taxation: A Small Guide for Big Gains)
in the CRB group companies got nothing, the investors of the mutual fund received a part and would get something. Only after the CRB case, SEBI tightened the regulations and introduced stringent measures for the protection of the investors’ interest. In short, MF investments are safe and it is practically very difficult for sponsors or managers to run away with the money. 
Jigar Patel (NRI Investments and Taxation: A Small Guide for Big Gains)
Personally, even if with all my knowledge and experience in the finance and investment fields and previous success in investing directly in stocks, I believe in investing in mutual funds. This is because my expertise is providing holistic consulting to NRIs based on local and international rules related to investment and taxation to increase their risk adjusted after-tax return and not that of equity research and stock picking.
Jigar Patel (NRI Investments and Taxation: A Small Guide for Big Gains)
Also, the exit load varies for different mutual fund schemes. SEBI also regulates the fund management fees (i.e. recurring expenses), which is charged based on the AUM of the MF scheme and varies from 1.75% to 2.5%. Investors can reduce the expense ratio by 0.5% - 0.7% to as low as 1.30% by investing in MF using direct plan option.
Jigar Patel (NRI Investments and Taxation: A Small Guide for Big Gains)
Dividend received from a mutual fund is exempt from tax for the investor. However, other than equity oriented MF schemes, Dividend Distribution Tax (DDT) is required to be paid by the MF schemes issuing the dividend. Please refer to DDT for more details.
Jigar Patel (NRI Investments and Taxation: A Small Guide for Big Gains)
Low cost: Investment in a direct plan of a big diversified equity mutual fund would cost only 1.30% per year (expense ratio of about 1.9% and saving by direct option of about 0.6%)
Jigar Patel (NRI Investments and Taxation: A Small Guide for Big Gains)
Taxation: The taxation of investment in a mutual fund investment is on par or better than investing directly in equity or debt securities, as explained in Taxation – Capital gain.
Jigar Patel (NRI Investments and Taxation: A Small Guide for Big Gains)
There is something for every investor: Whether you are a risk taker or risk averse, whether you want to invest in India or abroad, whether you want to invest in equity, debt or a combination of funds, whether you want to invest in some theme (e.g. rural, export-oriented, P/E ratio), industry (e.g. Manufacturing) or sector (e.g. Power), you will be able to do it through mutual funds. In short, it is a great investment vehicle to achieve your financial goals.
Jigar Patel (NRI Investments and Taxation: A Small Guide for Big Gains)
An investor can invest directly in a mutual fund by filling and submitting the application form and cheque to the respective mutual fund or invest indirectly, through an intermediary called an agent, broker, distributor or advisor, any
Jigar Patel (NRI Investments and Taxation: A Small Guide for Big Gains)
the expense ratio for a direct plan of equity, debt and liquid mutual funds are about 0.6%, 0.3% and 0.1%, respectively lower than the indirect or regular plan.
Jigar Patel (NRI Investments and Taxation: A Small Guide for Big Gains)
Mr. Arpit from UK has invested Rs. 100,000,000 in various equity mutual funds that generate 12% annual return, he could save Rs. 10,529,241 in 10 years and Rs. 43,231,465 in 20 years by selecting the direct plan. It would be better to pay an advisor that fee and invest directly than invest indirectly and pay the fee to a MF for marketing, selling and distribution expenses. For more information and which plan to select please refer to most important concepts related to Direct or Indirect option of investing in Mutual Fund.
Jigar Patel (NRI Investments and Taxation: A Small Guide for Big Gains)
Fixed Maturity Plan or FMP is a close ended mutual fund plan that invests in debt or fixed-income securities and has a fixed maturity. The
Jigar Patel (NRI Investments and Taxation: A Small Guide for Big Gains)
Sometimes it is easier or cheaper for companies or banks to issue these securities on a preferential basis to the mutual funds than to go to the general public.
Jigar Patel (NRI Investments and Taxation: A Small Guide for Big Gains)
Income from a mutual fund is either dividend or capital gains. The capital gain can be short term or long term based on the period of holding and whether STT is applicable or not.
Jigar Patel (NRI Investments and Taxation: A Small Guide for Big Gains)
Currency risk would always be there whether you invest directly in any movable or immovable properties in India or invest indirectly in India-focused mutual fund in your home country in your domestic currency.
Jigar Patel (NRI Investments and Taxation: A Small Guide for Big Gains)