Is your mutual fund advisor stringing you along with a lie? Are you getting the facts, or a skillfully staged show full of smoke, mirrors, and misdirection?
If you decide to invest in mutual funds, it’s very important to do your research and not blindly follow your advisor’s advice and claims.
Here are some of the most common myths and questionable practices surrounding mutual funds, and how you can combat them.
Mutual Fund Myths
1. “Mutual funds perform better than stocks since they are managed by experts.”



Some analysts claim that they are able to time the stock market and only invest during bull markets. The premise is simple: Buy stocks when the aggregate market is climbing and sell at the onset of a
When you see a stock heading towards a 52-week high, what is your initial reaction? Do you think that the stock is hitting powerful resistance and you should sell? Or is the stock about to rally with high momentum?
One of the most difficult decisions investors have to make is when to take profits and when to cut losses short. Some traders will prematurely sell as a stock rises while others will hang onto their shares far too long as prices plummet.
Not to knock the popular mutual fund screening filters, but it seems a little deceptive to suggest that one can simply check off boxes for “low risk” and “high performance” to find investment opportunities that will reliably beat the odds in the
With thousands of
Do you own shares of stock in a publicly traded company? You might think that your only trading options are to either buy or sell these shares, but when you factor in
Amid government debt, economic uncertainty, and political unrest, you’re one of many investors aware of the frightening factors that can lead to heightened levels of inflation.
A logical investor might assume that the best performing stocks are massive, cash-rich companies that have been in existence for decades. A reasoning mind tells us that smaller companies (i.e.
When it comes to
In 2002, gold traded for less than $300 per troy ounce. In 2010, the rate popped above $1,400.
Stocks go up in price for a number of reasons: a favorable news report, an entire sector rising, the appearance of undervaluation based on historical fundamental data, or trading by technical analysts based on bullish price and volume patterns.
With thousands of publicly traded companies to choose from, you may wonder how you can single out a handful of stocks that have the potential for significant capital gains. Many methods for picking stocks exist, from
While it may be tempting to throw yourself into the dramatic highs and lows of
Playing and 