Mutual Fund Performance – Alternatives With Better Risk – Reward
Written by admin on April 15th, 2011Can you make good gains in stock and mutual funds? Well the facts suggest you cant and the risk reward is against you. If you do then you don’t make much.
Mutual funds simply are a bad investment and with soaring oil prices choking economic growth the near term future is bleak.
Let’s look at the facts.
1. 90% of mutual funds have performance that doesn’t even beat the index
2. Those that do, consider a mutual fund performance as 10% + good. Add in inflation and that doesn’t leave you much.
3. Downside risk is high and many mutual funds can drop by 30% and some even more
4. Mutual funds that do badly simply disappear and another with a short term track record comes in its place and that if it fails it gets replaced.
5. Mutual funds are selling organisations and the sales patter always sounds great but if you wrote to one and asked for an aggregate of all funds ever managed you wont get a reply
6. Do mutual funds go out of business of they lose money? No, they still have their fees so performing is not an issue.
So reality is over 10 years if you make double figures consistently, that’s good in terms of mutual fund performance, but not good if you are interested in building wealth.
The best mutual performance (if your lucky to get it ) wont make you rich so what are the alternatives?
Firstly, you can find better performing investments with lower downside risk and you do not have to blindly give your money to a fund manager to lose.
Do a bit of research and homework – it wont take much effort and you will find a better investment.
A better alternative
A great investment is land. You may never have considered this but its cheap, easy to do has low risk and you can make big profits quickly.
You don’t need insider information or even to do a lot of work, but you will be able to get better growth than the best mutual fund performance.
A great investment in land is
Costa Rica. Land prices has been steadily increasing year after year and many investors are doubling their investment in just a couple of years and that’s way ahead of the best mutual fund performance.
Why is it increasing in value
Well the reasons are simple and compelling
Costa Rica is just a 3 hour flight from the US and property is 70% cheaper and so to are living costs.
Americans in record numbers are buying property here to improve their lifestyle and these properties need to be built on land in fact, investment is at record highs.
Why this bull makret will continue
Land bought in the way of the influx of new buyers can be sold quickly, at big profits and this bull market is set to continue. Why?
With 70 million baby boomers retiring in the next 15 years, with most unable to maintain their existing lifestyles means they will continue to go to Costa Rica for the good life at far lower cost they can get in the US.
By land here and you can beat the best performing mutual trust and have less risk.
We don’t have room here to explain all the advantages such as tax efficiency and ease of purchase but if you look into the facts you will see why this is a much better investment to build wealth longer term than even the best performing mutual fund.
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