Did you know that there are more mutual funds than there are stocks? Have you ever wondered why mutual funds are such popular investment vehicles? Conventional wisdom will tell you that mutual funds are popular because they are less expensive than stocks because they do not carry hefty commissions, they allow the little guy to invest in the markets because the start-up capital can be small, they offer diversification because they hold many investment positions, and finally, they are managed by professional money managers. Unfortunately, these are the reasons given to investors, but the truth is that mutual funds are popular because mutual funds are extremely profitable to the investment industry.

Mutual funds may seem inexpensive because the costs are hidden. Mutual funds are loaded with fees such as sales charges, management fees, and 12b-1 fees. Sales charges are front-end loads charged by the broker or advisor for buying mutual fund shares, and charges for selling mutual funds shares are back-end loads. These charges depend on the various classes of shares. For example, Class A shares usually have front-end loads and Class B shares usually have back-end loads. Front-end charges can be as high as 8.5 percent for Class A shares. This means that an investor with $10,000 is only putting $9,150 to work while $850 goes toward the sales charge. In addition to sales charges, someone has to manage the fund and therefore, also has to be paid a management fee. This fee can range from 0.10 to 2.00 percent per year and depends on the fund itself and its investment style. Another type of fee is 12b-1 which is paid to brokers or advisors to pay for marketing, distribution and service costs. The Financial Industry Regulation Authority (FINRA) allows funds to charge 12b-1 fees as high as 1.00 percent on an annual basis.

Adding up all of the fees, it is no wonder that mutual funds are popular on Wall Street. It’s a great business because everyone except the investor benefits from this investment vehicle. Unfortunately, for the investor, the returns are not as good as the investment industry promises. The average investor in a stock-oriented mutual fund generated 5.66 percent per year over the ten-year period ended December, 31, 2007, according to a study by Dalbar, Inc., a leading financial services market research firm. Notice that this doesn’t include the stock market decline in 2008.

But are all mutual funds bad? No, not all mutual funds are created equal. Saying that all mutual funds are the same would be equivalent to saying that all restaurants are the same. Mutual funds are simply investment companies that make investments on behalf of their investors. There are some mutual funds that delivered fabulous investment performances for its investors and did not charge outrageous fees. But the problem is that most of the investment public would never know about them because these funds don’t advertise much, and they don’t pay high commission fees to entice brokers and advisors to sell them. In other words, they don’t play the Wall Street game.

Every time when you decide to do some investment,we should adopt the follow advices:

No.1,Be a disciplined person.Before an investment,you need to set some invest rules,I would suggest to write down what you will do and let the public know all about it.You can start a blog,just like me and then tell the world your intention.Something like how much you would like to invest in a property and stock market.After how much profit or loss,you should sale your stocks or property,the big advantage is that you have a roadmap to follow when you do some investment.

No.2,Invest for capital growth and income.It is understood that people do investment for the growth of their capital.However,it would even better if the investment can bring some income.For example,you can invest in some properties,its value may grow when it is in a Bull market.You invest a house,in another word,you have the rights to use it,you can rent,then you can get some rent.The whole thing is quite simple,do your invest for capital growth and income.

No.3,Do diversified investments.One of the best way to avoid financial disaster is following diversified investments.You can invest in several project,stocks,property,bond and gold etc,besides if you have decide to enter the market,it is also high recommend to invest in instalments.The best part is that diversified investments can greatly reduce risks for you.

No.4,Be cautions.Once you find over 5 percent to 10 percent lose of your capital,you need to quit before any larger loss.

Rules you should not do:

No.1,Be aware of inflation.Inflation can be the No 1 danger for investors.Once the inflation goes up,currency will follow the downside.For investors,the best countermeasures are investing real estates,such as the shares and property,these countermeasures have been proved as the best way to against inflation.

No.2,Never rely on market forecasts.It has been known that Humans are unable to precisely predict the markets.Do not trust the forecasts that much.Investors should focus on their portfolios and ensure that they are well diversified.

No.3,Don’t hold before market falls.The market is not going to grow everyday.And it will fall once it reaches the point.For those of you who like long term investment for years.Keep reviewing your portfolio and quit before any market changes.

No.4,Don’t believe those appear to good to be true.Never believe too good things.As a matter of fact,when someone recommend you a very high profit investment,you should ask,why people show they gold goose if it is that profit.And most of those recommendations come forth to be traps.Why not try the New Zealand government bond,one of the most safest investment in our world,the profit is about 5%.If you want to do some save investment,5% growth of capital is what you should expect.Any return more then 5% is dangerous, the higher return level you want,the more risk you need to face.No exceptions.

No.5,no familiarity no investment.If you find that you can not figure out something,then it is high recommend to avoid investing it.Just image,if you can not understand a business,how can god let you become rich from it?The world is quite fair,only 10% people can make money from a business while the rest just loss money in their deals.And those 10% people are called experts.

Where is your main income from?Can you determine your monthly income?If you are rely on salary,which also means you are under employment.And you do not have much right to speak about your revenue.Your boss could give you a bonus when you do a good job,but what is a “good” job? Only he / she determines whether or not you do a good job.

We do not deny that your boss provides you steady and permanent income,however,that is as good as it gets.You can not ensure the security of your job because the reason mentioned above.So we are highly recommend you to have another extra source of income,you can treat it as a supplement of your salary or a fall-back plan just in case your boss decides to lay you off.

In order to gain extra income,the highly suggested way is investing in business.Normally,in business the more effort you put the more revenue comes out.Another good way to have extra income is investing in real estate business.The big advantage of doing real estate business is that it does not require lots of management skills or supervision like most of other businesses.

Unlike relying on salary,the revenue of business is unrestricted,it may be a big challenge since most of us can not predict budget or hence plan as we are unable to calculate the extra income at the end of month.But it is definitely to take the challenge.

Starting your own business or do some investments are the best way to get your financial freedom.But not everyone is good enough to be a businessman,in order to be a successful businessman,you are required to be aggressive,focused and calculate risks in the wild business world.

Even the gold price reaches a new level,this is not going to changed for inflation.If you talk the inflation into the consideration, you will find that the gold price should be over $2,000 per ounce.That will be a new record.Personally,I believe the gold price will hit $2,000 or even more in the following years and here is my personal ideas.

No.1,Gold is a commodity,and for all the commodity,the secular bull market can last up to 5 years.So there is still a long period for strong gold.The biggest price will be available in the latter stages of the bull market.

No.2,Gold always a safe-haven for investment.The value can be maintained or even increased throughout the ages.Since the world is still under recession,gold is still a good we should hold,it is definitely a good bodes for the price of gold.

No.3,The U.S. Dollar is still weak,and we do not now when the dollar will be strong again.For some fundamentally and technically reasons,it will not recover back soon.

No.4,The economy is still under recession and the US government is printing money.That makes the inflation even worse.People need a save investment before the major inflation comes to us.

No.5,The supply of gold is slowing down.Global central banks supply the majority of gold to the worldwide gold market.However,the supply has been slowed down recently.

No.6,the demand of gold is increasing sharply.especially in those developing market such as China,India.People in these countries are becoming rich and they need a safe to store their money,especially under the current economy climate.StreetTracks Gold Trust,is the largest gold exchange traded fund in the States is only four years old.

No.7,Many countries want to make their currency the world currency.Since the dollar is going down,many countries are thinking to switch their currency to world currency.In another words,U.S. treasuries might be depreciated any time.Therefore,if countries like Japan,China as well as other countries switch U.S. treasuries to Gold,the gold price will rocket into the sky.Besides,if those countries want to make their currency to world currency,they need enough gold to support their currency.

People can not tell how much the gold price will be,but it will be increased.There are many factors to make the gold price move to high point.

Sometimes,we just set too much leeway for ourself even when it is so close to our targets.So it is very smart to have someone or some systems to keep our track of progress.He / she will receive lots of great benefits if they can work with a trainer or tutorials.A coach does not need know all your financial details.What he/she should know is your financial goals.You need to give them infos about your goals and updates of your goals.You shall share with your coach all the things during the progress.Keep all the communion in fun and interesting.

With the help of your coach,you will realize how you work with your finance situations.These things are very difficult to be detected and controled.You should distinguish the controlable events from those uncontrolable things.When it comes to some easy to control events,you should use these event to achieve your financial goals,when it comes to uncontrolable events,you need to learn avoiding the harms from them.The uncontrolable things like inflation,taxes rate,interest rates and stock market tracks.Just try to avoid the harms from these factors and save your money,when the good opportunities come,then do some investments.

I really love the topic,I have talked about retirement plan when you are still 20 or 30.Now today we are going to talk about things about investing in the future.Do you have any plan for your retirement or holiday.If so,then you are a wise man.

Okay,investing for the future is not mean you have to join some get rich schemes or short-term stocks.When we say investing for the future,we also suggest you to invest in some safe ways,which will worth lots of profit in a long time period.

The first thing,let’s think about bonds.This is the first thing,we’d suggest you to invest for a long time period.Bonds are very safe and much like certificates of deposit.

Bonds can be issued by companies,banks or even governments.Depending on the type of bonds you buy,the risk and profit are different.Companies bonds are profitable but they are risky,the government bonds is safe,but the return takes a long time.The bank bonds is in the middle level.not too risky and not too profitable.We’d suggest you to buy government bonds because it is say and we are going to invest for the future.

The next recommendation is the Mutual funds.The mutual funds are safe.Mutual funds exist when people put their money together to buy bonds,stocks as well as other investments.

And the fund manager will decide how to invest the money.All what you need to do is that finding and giving money to qualified and reputable mutual fund companies.The mutual fund companies will invest the money together with other client’s money.Comparing to bonds,the mutual funds are a bit riskier.

Stock is another thing for long term investments.When you own some stocks,we just become a owner of the company you are investing in.

If your company is not doing good,your stock value drops,when your company does well,your stock value rises.

Stocks is much riskier the mutual funds.Although there is a great risk,you still can buy stock from good companies.

Real estate is another good thing to invest.You can buy houses or other properties.You the city where you houses or properties are located is growing,your real estate properties value grows.

So when you invest for the future.You just raise yourself a golden goose,which can give birth to gold eggs for you when you are sleep.

Your biggest sources is yourself.This is simply because you own the ability to earn money and protect or even develop your money.This is more important than jog around or visit friends.The problem is that you might be afraid of moving forward.Then you should encourage yourself to move ahead,get education and receive a degree,find a better job,or even learn some new technologies.These new stuffs can be applied in your future life.

Before starting your steps,you need to rethink yourself.For example,you might want to keep your body fit,or you just want to improve your health by exercises or anything else which can make you feel good.It is never too end to do something.You just need real interest in the changes.So open your heart and find what exactly inside it.And what you really want in your life.Just rethink about it.

And here we are going to present some strategies which will increase your personal value:

Love your work:This mean that you should like you job,and you can devoted yourself into work.You do not feel bored when you need to learn new stuffs for your job.

Lots of sleep,exercise and eat well:It is understood that if anyone wants to keep his/her mind clear,he/she needs to eat and exercise properly and sleep a lot.These things can help people productivity and or course keep a sharp mind.

Taking care of Credit: take care of your reputation and credit.It is said that those people who owns a good reputation and credit can achieve success.And another thing always clear off your debt.Debt is nothing good at all.

Prioritize:Normally,we need to handle lots of things in our daily life.However,out time is limited.So we need to know the priorities of our works.We need to think about family,work,rest and our health.So we need to do the most important thing in our life firstly than others.

Share things with your friends:If you are having compressive stress from your finance.Do not keep all the bad things in your mind.You should try to get help.You can talk to your friends about this things,or ask for advises from finance professional.They can help you to figure out plan to success.So,just talk to other.