Buy Engagement Ring Insurance To Protect Your Investment

If you followed the convention of spending two months salary on the diamond engagement ring with which you proposed to your girlfriend, who is now you wife, we are talking about some serious money. So wouldnt you want to protect that investment in case your wife losses the ring or damage it from wearing it every day?

As with any kind of insurance, the right engagement ring insurance makes financial sense. Insurance give you some protection for your monetary investment and gives you peace of mind in case the engagement ring is lost or stolen. While you may not be able to replace the sentimental value connected with the ring, at least youll be able to get a replacement ring without too much of a financial burden.

Most homeowner’s and renters policies come with jewelry coverage as part of the over-all policy. The limit for the coverage is usually low, typically in the range of $1,000 to $5,000, after the policy deductible is met. If you have fine jewelry such an expensive diamond engagement ring that is worth more that the limit of the coverage, you need to pay an additional premium to buy additional coverage for the ring.

The problem with jewelry coverage under a homeowner’s or renters policies is that most likely the policy does not cover damage or loss to the engagement ring outside the home and only provide cover if the loss happens inside the covered property due to fires or theft.

If you want an insurance policy that covers a loss or damage away from home, you need to purchase a stand alone policy thru a company that specializes in jewelry insurance. Many of the major home and auto insurers also offer jewelry insurance policies. Knowledgeable jewelers should be able to give you names of insurance companies that offer that kind of policy, if they dont sell the policy themselves.

Some jewelers, as a service to their customers and to make some additional money, sell stand alone jewelry policies that are underwritten by insurance companies. Just be sure to do some comparison shopping to make sure you are not being over charged for the policy.

The best jewelry insurance policy is a replacement type policy that would replace your loss or damaged ring with a ring of like kind, at the current value. For example, if you own and insure a diamond engagement ring from Tiffany and the ring is loss, the policy will replace the right with a similar ring from Tiffany and not from Kay jewelers, for example.

The most common and least expensive type of policy is the actual value policy, which replace the cash value of your ring, minus any depreciation. This type of policy is similar to an auto insurance policy, where in the event of a total loss; the insurance company would pay the current value of the auto, minus any depreciation.

When shopping for a engagement ring insurance that fits your needs, be sure you know the type of coverage you are getting so you dont get a big surprise if you ever have to file a claim and only then discover that the coverage is not what you thought it was.

Premiums vary depending on the type of policy, the policy limit, the deducible, and where you live. As with other types of insurance, shopping around will get you the best deal. But in general, engagement ring insurance is relatively inexpensive compared to the price of replacing a valuable diamond engagement ring, and the peace of mind of being able to wear your ring without constantly worrying about losing it far outweighs the cost of the insurance.

Exactly How To Invest Your Portfolio If Obama Wins The Presidency!

Whether you are an Obama fan or an Obama opponent, if he becomes the next President of the United States his policies will have an affect on the financial markets both domestically and internationally. He wants to bring change to the United States which by extension means world markets because we have such a huge economic foot print.

So, what do you need to think about with an Obama Presidency regarding how you structure your investment portfolios both taxable and 401(k)/IRA, etc.?

1.Taxes Matter: We dont yet know the details of how he will handle taxes on dividend income and capital gains. It is clear that at least some of the investing population will see an increase in taxes on those forms of investment returns. If you pay a 20% rate on capital gains that means you will have 20% less money being reinvested to grow and get the affect of compounding. Dividend rates could go up as high as 35% and that will really kill the benefit of dividend paying stocks. So, one can use tax free bonds for at least a portion of the fixed income portion of a portfolio. Second, you should make sure you are having your investment advisor use tax management in the investment and management of your portfolio. Tax managed passive mutual funds have an extremely low tax impact.
2.Capital Markets Work: There will be those gurus who will tell you they know which sectors or industries will boom under Obama and which will tank. Academic studies have shown over and over again that such attempts to combine stock picking with a market timing element almost never outperform the broad market (in fact they generally under perform) and when they do it is usually nothing more than luck and is thus not repeatable. Markets are essentially efficient and any attempt to regulate trade or change tax policy will end up being priced into the securities as soon as the information hits the wires.
3.Diversification is Key: The way to consistently win under an Obama Presidency is to hold very broadly diversified, global, low cost, asset class mutual funds. Diversification reduces uncertainty. If you hold a mutual fund of US securities with about 3500 stocks in it and one of them happens to be a Bear Stearns or Lehman Brothers, it will hardly make a blip in your portfolio as it goes out of existence. Dont be caught with concentrated position mutual funds or with individual securities. You will be carrying too much risk that you can diversify your way out of.
4.Risk and Return are Related: Exposure to meaningful risk factors in a diversified portfolio determines expected return. Over the long haul, stocks outperform bonds but not always; over the long haul small stocks outperform large stocks, but not always; over the long haul value stocks outperform growth stocks, but not always. Each of these outperformers has a greater volatility risk and a greater expected return.
5.Portfolio Structure Explains Performance: Asset allocation along size, value, and market exposure dimensions primarily determines the results of a broadly diversified portfolio. In other words, to increase the expected return of your portfolio under an Obama Presidency, own low cost, globally diversified asset class mutual funds that are over weighted to smaller and more value oriented stocks. If an all stock fund portfolio is too volatile for you, add some short term bond funds to damper the volatility.

Following academically sound investment principles will allow you to win the losers game during an Obama Presidency. Dont give in to the Wall Street marketing gurus who have proven their ability to separate you from your money, quickly and permanently.

Ichimoku Trading Strategies and the Relation to Price and Price Action

There are myriad of strategies that you can make use of to trade in the Forex market and among all of these, one of the most efficient are the ichimoku trading strategies. Mainly when you’re trading in Forex, it doesn’t matter what currencies you’re trading in. It doesn’t even matter what method, indicator or strategy you make use of. The main focus of your trading will always be the price and the price action. Once you gain a good understanding of these two things, you’ll be able to enhance your trading system.

In conjunction with using ichimoku trading strategies along with looking at the price and price action of your currencies, you’ll have a good edge in Forex trading. Before, the scenario might be divided between hit and a miss but now you can always make a hit on the profits. If you have a currency pair of the GBP/USD and trading on a daily time period, you’ll have a good way of knowing when it’s time to enter into selling or exit a selling position – it’s the same with entering and exiting a buying position.

On this situation, you only need to look at the price line and the current price. When the price line goes over the chikou span line or the lagging line in the ichimoku, it’s a good indicator that it’s the best time to sell. In contrast, the entry signal to buy will be when the chikou span is above the price line. In relation to the current price, selling is the best move when this is below the cloud and of course buying is the best move when current price are found above the cloud. If you focus your attention on price and price action, you can make the most out of your strategy. If it’s the ichimoku trading strategies, you’re in for some big profits.

At http://2ndskiesforex.com/, Chris Capre offers his unique Institutional and Retail market experience teaching Price Action & Ichimoku Strategies to trade the market successfully.

A Beginners Guide To Investing In Shares

Share markets are either the most favoured or the most hated entity depending on their status. A rising market is characterized by the build up of a herd mentality. If the index goes up continuously for 15 days, there is a sudden spurt in interest in buying. If the market falls drastically, calls from brokers are avoided.

We are going through a similar phase now. There has been an almost 50% depreciation in the broad index, while the drop in the prices of widely traded software stocks has been far more in many cases as high as 90%. It is being said that investors have fled the markets, unlikely to return. But can they afford to stay away? NO and the reasons are not far to seek.

In India, in the absence of worthwhile social security schemes and reliable medical insurance cover, so commonplace in the developed countries, we have to build a nest egg for old age. Savings have to cover daily expenses, long-term family obligations, such as the childrens education or marriage, and medical emergencies. Its no wonder then that Indias saving rate is as high as 25-27% of the GDP, one of the highest in the world.

Whats more, the interest earned on savings has to be higher than the rate of inflation. If not, savings are being devalued over time. The interest rate curve has been falling rapidly. Over the past few years, the rates of interest earned from banks and various government schemes have dropped substantially.

It is in such a scenario that stock markets come to the rescue. Stocks have consistently provided higher returns than fixed income savings avenues. They provide the power to beat inflation.

However, we hear stories all the time about people losing in the stock markets. Where are the gains? Perhaps, one has to question our attitude towards share investments. Do we perceive shares as investments? Or a form of lottery with a jackpot round the corner?

Any investment proposal needs to be evaluated against the returns it will provide over a specific time frame. However, when shares are bought, investors do not target specific levels of returns nor do they consider the risks.

The share market is not the place to look for a windfall. However, over the long term, share markets have normally provided returns averaging around 15% to 20%. Anything more than this should be considered abnormal. There are times when share prices climb even higher but the ones who really benefit are those who cash in on their gains. Dont belittle the 15%- 20% annual gain that shares have been giving. Over time and with compounding it makes a huge difference.

Money can be made on the share markets only if targets are set and a stop loss limit. For example: if an investor wishes to earn a return of 30% annually, the portfolio may be rotated thrice a year, with a 10% target profit each time the investor enters and exits the market. In the same way, if there is a 10% loss, one must exit the share. With such targets, it is difficult to make sizeable losses. One could try this theory out on a mock portfolio. Even if the profits are not targeted, the stop loss must be set, even if the purchases are for delivery. The availability of a Demat facility makes entry and exit extremely easy.

Investors who have speculative tendencies should dabble in the options market, rather then be day traders in the cash market. Options trading helps you to limit your losses since the maximum amount one can lose is the premium on options, and not the entire capital.

The portfolio has to be structured on the basis of how frequently you require the income flows and the capital return. The composition of the portfolio also depends on your age, status in life, other sources of income, risk bearing capacity, etc. Its wise not to put all your eggs in the share market alone, as it can, at times, be a most risky investment. Persons with fewer social obligations can afford to put more money in the share market, whereas a senior citizen could allocate just 5% of his wealth to shares. Every one needs to spend time to build a portfolio that suits their individual needs.

Lastly, a word of caution about the advice given by brokers. Every one actively seeks advice from brokers. However, unless the broker is a registered portfolio advisor, he will not be tracking your portfolio. He will merely give you a view on the market and on the stocks that are the current favorites. The brokers view is essentially a short-term view. He is too close to the market and is affected by short-term price movements and changes in sentiment. In the absence of a full-fledged research department, the broker is unable to do in-depth study and provide a long-term view about different stocks.

In such a situation, it would be advisable to track your own stocks. Do not expect your broker to give you the signals. It is your money that is at stake. You must manage it by setting and sticking to the buy and sell targets. Even if a share has been bought on a brokers advice, it is necessary to dispose it when you have achieved your targeted return. Set small goals, because they are not difficult to achieve.

Please remember the advice about profit and stop loss. Most of the money lost in shares markets is due to greed and the fear of taking a loss. We do not sell because we want to wait for the highest price. But few are able to sell at the top getting the timing exactly right is almost impossible! Similarly, investors are afraid to book a loss that has already occurred. So they let things drag out and then they sell at a much bigger loss. Sometimes, they wait so long that the shares become worthless. Remember that no complex or sophisticated study is needed to operate prudently and successfully in the stock market. Investors must keep their emotions in check. Whats really needed is a lot of common sense.

Buying a Condo as an Investment Property – Advantages and Disadvantages

If you’re like most people, you want your financial future to be better than your present, or at least not worse. So, you set money aside and think of ways to make it grow. The options seem endless, but you’ve selected real estate as your investment arena, and you’re considering condos.

Condos have several advantages over single family houses or 2-4 unit buildings. And several disadvantages. In my conversations with people who’ve invested in condos, few were aware of all of them. So here they are. (The people I mentioned were interested in condos for sale in Chicago and the surrounding area but I’m betting their typical of new investors everywhere.

The advantages and disadvantages I’m going to talk about apply whether you’re looking at Chicago condos for sale, New York condos for sale, or Sioux Falls condos for sale, assuming you’re looking to buy them as investment vehicles.

Advantages of buying a condo as an investment property

Maintenance

Maintenance needs to be done on all properties. Condos, especially condos that are professionally managed, offer some relief to condo investors.

You don’t have to worry about roof, stairs, landscaping and such. The association takes care of them. For a price, it’s true, but you don’t have to do them.

Some of the problems inside the unit can also be taken care of by the complex maintenance crew. That varies from condo association to condo association. And they charge you for it, but you don’t have to drop everything else and run to your condo because the sink’s leaking.

Price

Some condos are very expensive. However, houses of similar size in the same neighborhood cost more. So, you can buy an investment property in a better neighborhood. Also, in most areas, there’s no such thing as a 1-bedroom house, but there are 1-bedroom, or even no bedroom, condo units. And, usually, there are people willing to rent them.

Amenities

Amenities vary from condo association to condo association. But it’s possible to invest in a condo located in a complex that has swimming pool, 24-hour security, and such things.

The disadvantages of buying a condo as an investment

Rules

You have to follow rules that are not yours. Each association has its own rules. And the rules can change. One of the rules that can change is whether tenants are permitted or not. If you own a condo and the association votes no more tenants, when your lease is up, you either move in or sell. Your association might decide to go with the ‘no more tenants’ rule at a time when selling is not a great option.

Or, worse, they decide to allow too many rentals. Too many tenants can make getting a mortgage difficult (FHA and others do not like condo associations where more than 10% of the units are rented.) which makes reselling your investment difficult, not to mention refinancing it.

Shared decision making

Yes, you could make sure you have something to say about decisions and get yourself elected on the board of directors; still, you are not the only decision maker.

Association fees

You have to pay the same amount whether your unit is rented or vacant. In other words, you get to pay the same amount whether you use or not the services (for instance, the water bill portion of your assessment).

Special assessments

When you bought your condo unit, there were no special assessments and none were being considered. Six months later, the association decides it’s time for a new face and there’s not enough money in the reserves. They decide to go ahead with the face lift and pay it with special assessments. Your share is going to be twice your profits for the next 20 months. Can happen.

Yes, things can go wrong with a single family investment or an apartment building investment. But there you have more control. Because there you can have a home inspector inspect the whole structure. Because there there’s no board of director’s member whose boyfriend owns a construction company that could use a few thousand dollars.

So, overall, buying a condo as an investment is not the way to go. That is, if you can afford a single family house. A single family house is not the best way to go if you can afford a 2-unit building. A 2-unit building is not the best way to go if you can afford a 3-unit building and so on. Because of 2 reasons: when a condo is vacant (or a single family house) the whole income source is gone but the expenses are still there.

In any case, if you’re buying a condo as an investment property, you should know what you’re getting into.

Guide to Mortgage Loans in California

Mortgage loans are absolutely handy in purchasing a real estate or property. Now, are you looking for such mortgage loans to buy a new property in California? Getting the loans might initially seem tedious. However, with the best experts and the most unfaltering services from these experts, you can easily purchase a property in California with these mortgage loans. The lucrative interest rates and the plethora of advantages associated with these loans add to the brownie points.

Lucrative mortgage loans

You can avail the best Mortgage Loans in California from any reputed bank which offers proper interest rates along with some viable refunding schemes and policies. The best companies offering you these real estate schemes make sure to offer you the best loans in the most commendable interest rates. Besides that, they also make sure that the entire procedure of applying for these loans and getting them sanctioned is simplified without much hassle. All in all, the companies offering these loans are inherently keen in offering you the best loans to choose from.

Viable home renovation loans

Is your home asking for its renovation? Well, if you are not prepared financially at the current stage, you can avail some outstanding Home Improvement Loans in California provided by many reputed companies all over the city. The loan schemes and policies of repayment are simple and easy to follow. Borrowing up to 150% of the approximate value of your property is granted by all the bank of California. So, you can easily get your required improvements done in this budget and start your repayment at low interest rates gradually.

The best mortgage brokers

The mortgage broker performs as an intermediate body between the lenders and borrower to cater mortgage loans. These mortgage brokers in California are innately competent and they also have a proper broker licence. The Best Mortgage Brokers California, are adept in offering you the best loan sanctions in a jiffy. They have ample information about these loans and thus they offer you an apt and holistic insight about these loans and their various proceedings.

A reliable mortgage broker can easily get your loans sanctioned. As an addendum, they charge a nominal percentage commission as a service charge. So, if you are planning to purchase a real estate in California, simply consult these experts for complete information on the best loan packages.

Prolific Home Equity loans After purchasing your new house you will require home equity loans for its proper maintenance. In fact, you can opt for these home equity loans for any and every purpose. The experts helping you with these loans will make sure that about 80% of the proper and authentic value of your homes is sanctioned in these home equity loans. Moreover, you will also have to pay interests not for the entire property, but only for the amount you are using. These loans can be repaid and can be used from time to time as per requirement. So, choosing the home equity loans in California can indeed be a viable decision. Choose these loans to enjoy some commendable benefits from your property, in the long run.

http://www.pointwestfinancial.com/

Contact

18672 Florida St. Suite 101a, H untington Beach California 92648 USA Tel:714-848-0400 Fax:717 848-7931 Toll Free: 866-848-0600

Importance Of Investment Casting And Its Export Market

One of the most recent developments in investment casting is foam casting. This type of casting removes some steps involved in the entire procedure. On an overall basis the process is used for smaller casts, however it is good enough to see through complicated tasks such as door frames for aircrafts and steel and aluminum castings. Although it involves low costs, it is more costly than sand or die casting systems.

Investment casting grew worldwide during the 1980s to cater to the evolving demands of aircraft engine and airframe parts. It is also utilized in sculpture and jewelery and about one hundred years ago dental inlays and even surgical implants were made using the method.

The method behind investment castings

The entire process starts off with so-called master pattern. The user makes use of wood, plastic, steel, clay, wax and wood to craft the original design. Then he makes a mold of it.

Once the molds are made then the wax patterns will be crafted as well. The patterns are not only made of wax, even plastic or frozen material is also used in the process.

Industrial applications of investment cast

Investment castings are commonly used in power generation and aerospace industries. Turbine blades as well as cooling systems are made of it. Some of the common examples of blades produced from the process are directionally solidified, conventional equated and single crystal blades. Even military, medical, automotive and commercial sectors make use investment casts.

Breakthrough in Investment Casting

The use of software is being looked upon as a big breakthrough for the investment casting process, something that will considerably optimize injection moulding of ceramic cores and facilitate the design of parts with more complex geometries.

Demand for Investment Casting Products in India

China, Vietnam, United States, India, Hong Kong, Turkey, South Korea, Bulgaria

Prominent Places to source Investment Casting Products from India

Rajkot, Ahmedabad, Mumbai, Bhavnagar , Bangalore , Coimbatore, Pune , Jalandhar, Vadodara, New Delhi, Thane, Chennai, Delhi, Ludhiana, Agra, Belgaum, Faridabad, Kolhapur, Hubli, Hyderabad , Kanchipuram, Kolapur , Kolkata, Ahmednagar , Changodar Gurgaon, Jamnagar, Junagadh, Kalo , Noida , Rajamundry, Shape, Sihor , Vasai.

URL :

http://www.made-from-india.com/article/Importance-of-Investment-Casting-and-its-export-market-414.html

A Review Of The Currensee Trade Leaders Investment Program

Institutional Forex traders and large investments banks have been raking in massive profits from the Forex (Foreign Exchange) market for decades but only until recently has the Forex market been available to smaller investors and individuals.

The “retail” Forex market exploded into the mainstream a few years ago and along with it came mobs of shady Forex brokers, internet marketers, and fake Forex gurus, flooding the market with hundreds of trading seminars, Forex robots (Expert Advisors) and so called automated trading systems all promising easy riches in the Forex market.

The sad truth is that the majority of traders and trading systems fail to make a single dime. In fact most traders and trading systems actually lose money. Many investors seeking to create passive income have turned to managed trading accounts. However, as you probably know, finding quality managed trading accounts is like searching for a needle in a haystack. Currensee, a trading company with its main corporate office located in Boston, MA, licensed by the National Futures Association (NFA) and the Financial Services Authority (UK) has pioneered a Forex investment and trading model connecting investors with some of the world’s best Forex traders and Automated Trading Accounts.

Back in 2009, with CEO, Dave Lemont leading the company, Currensee created and launched the world’s first global social network for Forex traders and money managers and in 2010 they brought auto traded Forex accounts to an entirely new level by introducing their Currensee Trade Leaders Investment Program.

The Currensee Trade Leaders Investment Program provides investors with all levels of experience the opportunity to leverage the expert knowledge and real life experience of some of the best and most profitable Forex traders, while allowing the investor to maintain full control of their investment account.

This new model of Forex investing gives you the incredible ability to follow and automatically execute the trades of the most profitable Currensee traders, which they call “Trade Leaders.” Currensee Trade Leaders are the best of the best and each are hand selected out of a pool of literally thousands of Forex traders on the Currensee Forex trading social network.

Essentially as an investor you get to hire some of the most profitable and successful Forex traders in the world. Sounds great but the question is does the Currensee Trade Leaders Investment Program actually deliver real profits?

In my experience as a Forex trader and with various managed trading accounts and automated trading systems as well as personal recommendations from friends and fellow investors benefiting from the Currensee program I must say that the Currensee Trade Leaders Investment Program is definitely the real deal and a breath of fresh air in the world of Forex investing.

How Does the Currensee Trade Leaders Investment Program Work?

Once the Trade Leaders are picked and extensively screened for consistency, profitability, historical performance and most importantly their risk management, the Trade Leaders Investment Program platform then allows you to follow and add the best performing Forex traders to your own custom automated trading portfolio.

You then sit back and monitor their performance with a variety of custom performance metrics which measure the performance of each trader in your account with a proprietary algorithm called the Currensee Trader Authority Index (TAI) score, which tracks and measures each traders performance in the areas of profitability, cumulative returns, risk, trading style and experience.

Once you’ve chosen the Trade Leaders you want to follow, whenever the traders execute a trade on their personal accounts the Currensee platform will automatically execute the exact trade in your own live trading account.

Currensee Major Benefits

The ability to create truly hands free passive income by having top Forex traders grow your money for you is incredible all by itself, but what’s really impressive is the fact that as an investor following the Currensee Trade Leaders you get a level of professionalism and transparency that up until now has been virtually unheard of.

Your success is literally directly linked to their success. They only profit if you profit. However, you get the added benefit of remaining in complete control of your account at all times.

Buying A Condo As An Investment Property – Pros And Cons

If you’re like most people, you want your financial future to be better than your present, or at least not worse. So, you set money aside and think of ways to make it grow. The options seem endless, but you’ve selected real estate as your investment arena, and you’re considering condos.

Condos have several advantages over single family houses or 2-4 unit buildings. And several disadvantages. In my conversations with people who’ve invested in condos, few were aware of all of them. So here they are.

Advantages of buying a condo as an investment property

Maintenance

Maintenance needs to be done on all properties. Condos, especially condos that are professionally managed, offer some relief to condo investors.

You don’t have to worry about roof, stairs, landscaping and such. The association takes care of them. For a price, it’s true, but you don’t have to do them.

Some of the problems inside the unit can also be taken care of by the complex maintenance crew. That varies from condo association to condo association. And they charge you for it, but you don’t have to drop everything else and run to your condo because the sink’s leaking.

Price

Some condos are very expensive. However, houses of similar size in the same neighborhood cost more. So, you can buy an investment property in a better neighborhood. Also, in most areas, there’s no such thing as a 1-bedroom house, but there are 1-bedroom, or even no bedroom, condo units. And, usually, there are people willing to rent them.

Amenities

Amenities vary from condo association to condo association. But it’s possible to invest in a condo located in a complex that has swimming pool, 24-hour security, and such things.

The disadvantages of buying a condo as an investment

Rules

You have to follow rules that are not yours. Each association has its own rules. And the rules can change. One of the rules that can change is whether tenants are permitted or not. If you own a condo and the association votes no more tenants, when your lease is up, you either move in or sell. Your association might decide to go with the ‘no more tenants’ rule at a time when selling is not a great option.

Or, worse, they decide to allow too many rentals. Too many tenants can make getting a mortgage difficult (FHA and others do not like condo associations where more than 10% of the units are rented.) which makes reselling your investment difficult, not to mention refinancing it.

Shared decision making

Yes, you could make sure you have something to say about decisions and get yourself elected on the board of directors; still, you are not the only decision maker.

Association fees

You have to pay the same amount whether your unit is rented or vacant. In other words, you get to pay the same amount whether you use or not the services (for instance, the water bill portion of your assessment).

Special assessments

When you bought your condo unit, there were no special assessments and none were being considered. Six months later, the association decides it’s time for a new face and there’s not enough money in the reserves. They decide to go ahead with the face lift and pay it with special assessments. Your share is going to be twice your profits for the next 20 months. Can happen.

Yes, things can go wrong with a single family investment or an apartment building investment. But there you have more control. Because there you can have a home inspector inspect the whole structure. Because there there’s no board of director’s member whose boyfriend owns a construction company that could use a few thousand dollars.

So, overall, buying a condo as an investment is not the way to go. That is, if you can afford a single family house. A single family house is not the best way to go if you can afford a 2-unit building. A 2-unit building is not the best way to go if you can afford a 3-unit building and so on. Because of 2 reasons: when a condo is vacant (or a single family house) the whole income source is gone but the expenses are still there.

In any case, if you’re buying a condo as an investment property, you should know what you’re getting into.

Hedge Fund Vs Mutual Fund, Understanding The Differences

In 1949 Australian Alfred Jones was credited with the term “hedge fund”. Historically it derives its name from the use of hedging to manage risk while achieving superior returns. Today, a hedge fund is an un-regulated investment vehicle designated for sophisticated, also known as the “Accredited Investor”.

Mutual funds gained popularity in the 1980’s. Prior to this time, the problem of the small investor was in obtaining sufficient knowledge to make informed investment decisions, and so the average person avoided stock market investing. Instead money was held in traditional savings accounts or placed with a bank in a Guaranteed Investment Certificate (“GIC”) or Certificate of Deposit (“CD”).

What to do. The small investor was not able to obtain a professional money manager without $10 million or more to start. But what if he could pool his money with other small investors to reach this minimum threshold. And so the mutual fund was created to address these exact concerns.

The mutual fund concept was simple, allow the un-sophisticated investor access to the strategies of the professional money manager. This was done by pooling small sums of money, as little as $20.00 deposited monthly. In return, the fund company would use professional money managers using professional investment strategies to easily out perform traditional bank savings products.

The mutual fund investor had other problems. Because they did not understand the nature of the investments made for them, government regulators got involved to protect investor rights. And so mutual fund investing became regulated and soon took on a life of its own. Rules were set in place to govern what could be held within a mutual fund and how the investment strategies were marketed to the public. Even what could be invested and what should be avoided.

While much evolution has transpired since the early days of the 80’s. One thing is for certain, mutual fund investing is all about what it cannot do. While this article is not focused on these issues, there are some glaring examples the investor needs to know. In times of market un-certainty, the mutual fund cannot sell and move to cash for safety. The manager must remain fully invested at all times making the investor, in consultation with his Investment Advisor, responsible for proper asset allocation. The mutual fund also cannot employ risk management or hedging techniques because they are deemed too sophisticated for the small investor to understand. So to avoid investor complaints, these important strategies are discouraged by managers and outlawed by regulators.

In the end, all of the benefits started by the mutual fund industry to provide safety of capital have been regulated away from the interests of the small investor. In fact, these are the exact investors which need safety of capital most of all. Many market observers believe the industry has become over regulated and as such, do more harm than good.

To-date, the hedge fund industry has been able in all country jurisdictions to avoid nuisance government meddling. The recent wall street initiated financial melt down has proven that even a self regulated industry is not immune. It seems big company rights take precedence over investor rights. So some regulation may be forth coming. Historically, the hedge fund industry has been able to avoid regulation by offering its products only to the Accredited Investor. There is a strict agreed upon formula based on wealth accumulation. The premise being if you were smart enough to accumulate wealth, then you are smart enough to understand the sophisticated investments being recommended.

Typically hedge fund investors are in direct contrast to mutual fund investors and thus have different needs. The mutual fund investor has modest wealth and little investment knowledge. The hedge fund investor has significant wealth with greater investment understanding. Therefore one is regulated to protect the investor and the other is not.

The above description is not the only difference that separates the two. Hedge funds can employ a complex strategy of investment vehicles known only to the fund manager. Many hedge fund managers are protective of any proprietary trading formula which will provide an edge over their competition and disclosure of their trading style is not required.

Mutual funds are sold through an Investment Advisor who will make comparisons, explain and make recommendations for a balanced portfolio. Hedge fund investing can be more difficult. Firstly, there can be difficulty in locating a list of the availability of funds. There are however helpful data-bases for this. Then you must undertake your own due diligence to ascertain if it is the right asset mix for your overall portfolio.

Thirdly, you’ll need to have an understanding of the different investment strategies. Do you choose a value fund or a growth fund. CTA funds are out performing these days and what about a suitable bond fund. Does my fund employ hedging and should I invest in an off-shore fund to obtain the tax benefits.

There are certainly many things to think about when selecting the proper investment vehicle. Make your selection with intelligence and proper planning. Ask around and be inquisitive. Your level of investment knowledge and the time needed to devote to this topic will dictate which is best for you.