MUTUAL FUNDS – Please read the disclosure carefully

This is a nice summary of the flaws in many mutual funds published on Market Watch. Too many mutual funds are simply index fundsimages disguised as something else. And most of the rest are simply attempts to market a product that isn’t designed to actually add value (but sounds fancy enough to accumulate assets). If you missed John Bogle’s discussion on the flaws in the mutual fund industry you should watch it here.

The 10 things via Market Watch:

  1. “Cheap funds often outperform pricey ones.”
  2. “We can’t beat the market.”

  3. “When skill fails, we just double (or quintuple) our odds.”

  4. “People aren’t buying our product…” Continue reading “MUTUAL FUNDS – Please read the disclosure carefully”

The Investment Style

Sometimes you like a book to the point that you would like to read it again, Came across an  interesting extract from one of my favorite imagesbook Trader Guns and money, ..The fund managers had their own papal fashions which is called as investment styles,

Style :                     Index Fund

Meaning :           The fund manager invests to match some  index like S&P 500

Reference :          The fund manager has give up trying to beat the market.


Style :                    Active Management

Meaning :           The Fund manager picks up stock that willdo better than the market

Reference :          The triumph of hope over experience. You the investor are paying for the experiment. Continue reading “The Investment Style”

Asset Manager Challenges under EMIR

“Regulation as such would not be a problem, if only one knew how it looks like“. This is a claim often heard by asset imagesmanagers.

There has been published a lot of literature, news and considerations around EMIR in the past months. EMIR applies its obligations to “financial institutions”, including investment firms, Undertakings for Collective Investments in Transferable Securities (“UCITS”) funds and their managers, and entities that will be authorized under the Alternative Investment Funds Managers Directive (“AIFMD”), who trade in “eligible derivatives contracts” such as options, futures, swaps, and contracts for differences. Continue reading “Asset Manager Challenges under EMIR”