No Load Mutual Funds – Are They a Smart Investment Choice?

If you want to start investing but don’t know the first thing about where you should your money, then mutual funds are a great way to get started. They essentially consist of a pool of money which is then allocated into assets such as stocks or bonds. What this essentially means is that your investment into a particular fund will give you holdings in different assets thus reducing your overall risk.


Of course, like with stocks and other assets not all mutual funds are created equally as there are literally hundreds of available funds. Load mutual funds charge a fee which pays the salary of the board of advisers. The fees typically vary but are usually a small amount so if you earn $100 you might get back $96 after all the fees.


On the other hand, no load mutual funds do not charge a fee to investors and are generally available to anyone. Given today’s economy, are no load mutual funds inferior to those that charge a fee for their services? Any manager that “guarantees” a return on your investment is only out to get your money so be extra careful of those who promise a return.


While there are most definitely those funds that charge a fee that do exceptionally well, the return you can expect to get will be significantly lower once all the fees are factored in. If you are just starting out, then it is suggested to invest in those funds that do not charge a fee. Stable stocks such as from oil and utility companies typically stay consistent and pay out decent dividends.


No load mutual funds are excellent investment vehicles as they allow you to diversify and reduce your risk. Be sure to always do your research ahead of time into a particular fund you are interested in and use resources to gather further analysis. The last thing you want is following a hot tip that turns out to be a dud because you didn’t do your research.


Paradigm Capital Management is a trusted leader in small cap investing. The Paradigm Funds family of no-load mutual funds makes the firm’s small-cap and SMid-cap strategies available to fee-based financial advisers and retirement professionals. Paradigm Funds are widely available on more than 50 no-load platforms.

To learn more about how Paradigm Capital Management’s capabilities align with your long-term goals, please contact us at (518) 431-3500


Penny Stock Investment Fraud

You could have invested in the so called penny stocks in the past. It’s important for you to be conscious of the drawbacks of these investments, so you can protect yourself as an investor. Many new stock market investors make the error of making an investment in thinking that they’ll be ready to make a quick return. However, in truth, you may finish up losing giant amounts of money, as these kinds of securities are simply manipulated and likewise all sorts of frauds can happen. Though, not each penny stock can be thought as fraudulent, the possibilities of you having a difficulty due to a misconception are terribly high with small caps.


The most important technique of crime is by disinformation. It is very tough to get info about these stocks, as these securities are no longer bound by the data laws and rules that apply to standard growth stocks that are found in the New York Stock Exchange. Hence, you haven’t any method of knowing if these investments will be able to earn income, since you will not have any trustworthy history to research on.


Additionally, you will not be informed about any top management changes or any top level calls as these firms don’t have to tell the general public. So , you will not have the essential info that will help you to make the correct call about these securities. You can not find info about their total fiscal assets, and their money return proportions and quotients.


They are subject to manipulation and in several cases; the middle management of these firms will use fake and manipulative media coverage from local Television stations, radios and other media outlets. You will watch these interviews and you may think that these small caps will be in a position to show great performance. Therefore , you may finish up purchasing numerous penny stocks only to see that you have lost a large amount of money.


E-mail spamming is the most typical crime methodology that these firms use. Millions of spam e-mail messages are sent to a lot of investors in the hope that many of them will fraudulently believe that these stocks will gain in price. In plenty of cases, these kinds of spam e-mail methods are employed, so the price control of these micro caps happens. When a lot of stock holders inquire about a certain small cap, then coincidentally the costs will go up because of the illusion of demand.


In several cases, the costs of these investments are manipulated and when you’re making an attempt to sell your shares, you can quickly see the volume of trade is awfully thin.


This could make you have frozen assets, since you may not be in a position to sell your shares due to low demand. Therefore , you’ll be compelled to sell your penny stocks with a low price and the manipulators will buy your shares at even a lower price from you. Often these sorts of activities are employed by black market dealers to wash filthy and illegal cash.


Paradigm Capital Management provides you with the best stock picks and stock analysis. Paradigm Capital is a trusted leader in small cap investing. With a long history of small-cap investing, Paradigm Capital employs a disciplined, bottom-up approach with an emphasis on fundamental analysis and extensive management contact.
Also read: Associate with Paradigm Capital Management for Mutual Fund Distribution