New answers tagged mutual-funds
4
Check to see if there was a special dividend/distribution in 2015 that isn't being accounted for in the graph that you posted.
You could cross reference this by looking at their year by year performance. My guess is that the annual performance for 2015 will not reflect this approximate $10 drop, reinforcing the idea of a dividend/distribution.
2
There are 3 main arguments for why you should concentrate your investments in the US rather than holding international funds, they are covered in greater detail here. But broadly speaking they boil down to:
Added risk - currency risks and a lower level of transparency in relation in the market tend to make international funds riskier investments. The US has ...
0
A mix.
Diversification is good.
More diversification is better.
The US market is larger than the Indian market, so you should invest more money into US market and less money into Indian market. But of course do invest some of your money into Indian market, as well.
Don't forger other markets, too: Europe, Japan, Korea, China, etc.
1
In addition to the points you raised, you should also consider that most (if not all) Indian mutual funds will not accept investments from an individual living in the US, because of IRS reporting regulations
4
Read JL Collins stock series. Part 10 provides a good explanation of why a large regulated brokerage that tracks an index can't crash.
"1. You are not investing in Vanguard, you are investing in one or more of the mutual funds it manages.
The Vanguard mutual funds are held as separate entities. Their assets are separate from Vanguard, they each carry ...
2
If something happens to the mutual fund and it crashes, you lose everything.
Nothing will happen to the mutual fund that doesn't also happen to the underlying index.
What might happen is that the brokerage goes bankrupt or collapses due to some malfeasance.
The SIPC should pick up the pieces after you, but that will take time. Better to just invest with ...
3
If something happens to the mutual fund and it crashes, you lose everything.
Theoretically, yes, but the point of diversification is that the odds of ALL of the underlying stocks going to zero is infinitesimal. Certainly there can be large economy-wide crashes, which is why you can further diversify into multiple mutual funds covering different markets (...
1
There are several reasons why the average effective duration might be significantly less that the average maturity:
Use of floating-rate bonds (they have very small effective durations)
Use of derivatives (i.e. bond futures or swaps)
Use of bonds with embedded options (callable/putable)
Any of those can be used to manage duration.
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