|
|
Listed Article | Reprint this article |
|
Category:
Articles » Finance » Mutual Funds » Article |
|
|
| |
The Perfect Mutual Fund
By Charles M. O'Melia
The Perfect Mutual Fund
Is the Mutual Fund you build yourself!
The perfect Mutual Fund you build should have the objective of owning no more than 12 to 15 companies; owning shares in 12 companies would allow the diversity needed to sleep well at night and would provide a cash dividend every week of the year.
The 12 companies (with staggered dividend payout dates) in your perfect Mutual Fund should not only provide a cash dividend every week of the year, the companies should also have a hist- orical record of raising their dividends every year for at least the past 8 years (to eliminate risk).
The perfect Mutual Fund would have no fees attached, every cent put into the Fund would work toward your return on investment (ROI).
There would not be any commission fees, load fees, management fees or advertising fees, and there would be no illegal trading practices, hidden fees abuses or any type of hidden fee. The perfect Mutual Fund would benefit you and your family and no one else.
The perfect Mutual Fund would require a savings plan to add to your holdings every quarter, until retirement. This would allow your perfect Mutual Fund to dollar-cost average (buying the
same stock at different prices through the years) into your holdings every quarter (your dividends from the companies would be doing this for you, automatically, commission free; your quarterly investments would also be commission free).
With this in mind, every dividend received from a company in the Fund would be higher than the previous dividend from that comp-any (as long as the company, at least, maintains their dividend and in the perfect Mutual Fund every company has a history of raising their dividend every year).
In the perfect Mutual Fund, when prices of your stock holdings in the Fund decline, the cash dividend income from the Fund simply accelerates. The reason for this is simple - the lower the stock prices the higher the dividend yields. A company, for example, may pay a dividend of 50 cents a share. Whether that company's share price is 70 dollars a share or 40 dollars a share, the company pays 50 cents a share. At a lower stock price your reinvested dividend and quarterly investment purchases more shares.
In the perfect Mutual Fund your money is not spread too thin. For example, putting $5,000.00 into, lets say, the S&P 500 Index Fund, you would end up owning around $10.00 worth of 500 different companies. Other than the obvious fact that your money is being spread too thin, any dividends from the companies in the Fund could possibly be eaten up by management and other Mutual Fund fees.
The perfect Mutual Fund you can build for yourself real!
For more excerpts from the book 'The Stockopoly Plan' visit www.thestockopolyplan.com
About the Author
Charles M. O'Melia is an individual investor with almost 40 years of experience and passion for the stock market. The author of the book The Stockopoly Plan - Investing for Retirement; published by American-Book Publishing. The book can be ordered at: http://www.pdbookstore.com/comfiles/pages/
CharlesMOMelia.shtml
Article Source: http://www.simplysearch4it.com/author-articles/0/1.html
| If you wish to add the above article to your website or newsletters then please include the "Article Source: http://www.simplysearch4it.com/author-articles/0/1.html" as shown above and make it hyperlinked. |
| Some other articles by Charles M. O'Melia | Making an offer on an Irish Property
More often than not, First Time Buyer Ireland couples/singles find it very difficult to obtain suitable mortgage offers. However, after you pass ...
Ugly people – more than a joke
We can think long and hard about what makes us humans. The truth of the matter is that we are not perfect and we all have our own defects. Ugliness is part of us ...
Do ugly women feel the same as ugly men?
There have been a lot of research studies made about ugly people. When I say ugly people I don't just mean ugly men, ...
Ugly men and ugly women – ugly on the inside/outside?
The Internet is one of the most amazing things ever invented. It can offer us all the info we need and much more. The online world can be a ...
Ugly women and men facing the issue of beauty
From ugliness to beauty – nothing can be more representative than examples. If you look it up on the Internet, you'll see just how difficult it is for people to reach that artificial billboard look. It takes ...
Ugly people and charisma
We are sure that the idea of ugly women who nonetheless possess unbelievable, charming and persuasive powers is not new to your mind. And this doesn't go true for women exclusively, but for ugly men as ...
|
|
| |
|
|
|
| |
