you should on a desert island with no TV, newspaper or Internet connection at the hearing on the scandal miss the big investment funds in 2003 have lived.

The problem was that some fund companies allowed certain mutual funds reporting in after-hours trading, sometimes incorrectly, that are committed to market-timing. Unfortunately, some businesses used confusion over the “market timing” concept to promote their own cause. How?

They used the question to ban all forms of trading of their funds, and some companies impose heavy short-term redemption fees, fines, for all practical purposes, the name to avoid impropriety. But the real idea behind this: you buy our products and never sell

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These companies advocate a buy and hold philosophy persist in spite of the devastating impact that the approach to investor portfolios during the bear market had in recent years. The performance is unimportant to them, they want your money in their funds when it goes up or down.

With all the negative press in recent months, one might think that companies would be in mutual funds to clean their situation and began to give more consideration to the individual investor. Not at all.

This was brought home to when a fund manager of a mutual fund 0 million me know what my plans in terms of possession, were our positions with the funds (so-called ca million EUR).

I explained my method of monitoring the trend, and he became angry when he can I protect my clients accumulated profits from the sale of his land if it were heard by 7% from its peak.

His rage made it clear he did not want management to benefit its customers, he cared about what is best for him and his company

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So what can we do to not being exploited? do not know what to tell you – for one thing, what is your fund company. Adoption of a strategy to track trends, as I do, and use the capacity of the nursery stock funds than picking your advantage by buying and holding only as long as the money is good.

Remember, the fund manager has a big disadvantage over you: He has always “must be” invested in order to allow the public to buy the shares in his fund. Not you!

If market conditions are better than you the security of a money market account, because we are in a severe downtrend, then you can run away and your money. It can not. He continually strives to adapt its portfolio to changing economic conditions, so that its potential losses are minimized. At the same time you are told that his fund is the investment for all seasons. Fall on him!

You as an individual investor is really in the driver’s seat. Unfortunately, you have probably been conditioned to think that Buy & Hope is a good investment strategy when in fact a loss of business.

The bottom line is to use an investment fund to perform well in strong trends and further away during the turnaround. (This is exactly what I had for my clients in October 2001 and we have retained the lion’s share of their profits, while Buy & Door insisted the emperor’s new clothes.) Soon you will have the impression that you are responsible for your financial destiny and all investment funds are chosen only a tool to get closer to your goals in order to maximize profits and minimize your losses.


Fund companies, mutual