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Asset size is very important to watch when you invest in a mutual fund or an etf.
If the asset size (or) market cap. of the fund increases it shows that more people think that the fund is good and invest in it. On the other had, if the asset size decreases month after month then it shows that investors are bailing out.So if this happens one needs to analyze the issues and plan to exit if needed.

Below is a chart of the growth in asset size of a fund:

The chart clearly shows the asset size increased exponentially in a few months.

In this example, the NAV of the fund grew as follows:

Dec, 2006 = $19.11 (Asset was $115 Mil)
Aug, 2007 = $22.77 (Asset was $175 Mil)
Oct, 2007 = $25.74 (Asset was $279 Mil)
Nov, 2007 = $26.74 (Asset was $340 Mil)
Dec, 2007 = $26.44 (Asset was $420 Mil)

Currently the fund’s NAV is around $30 with asset size at $575 Mil. So as the asset size grew from $115 Mil to $575 Mil, the NAV grew by over 50%.

written by David

Are there foreign utility mutual funds?
There are no mutual funds solely concentrated on utilities in other countries.
However you can assemble a list of global utility stocks for your portfolio. There are many hi-yield foreign utility stocks trading in the US.

A list of such stocks can be found here:
http://www.topforeignstocks.com/Hi-Yield-Portfolio-Utilities.htm

What are the sectors mutual funds available for investing in other countries?.
There are some sector funds such as small cap, large cap funds.

Are there country specific mutual funds?
Yes but not for all countries. For eg- there are a some funds for Russia, China etc.

What other mutual funds options are there for me?
You have a variety of regional funds that invest in a specific region such as Eastern Europe, Latin America, Asian Pacific etc.

More in Part II later..

written by David

What are the fees I need to pay in a mutual fund?
Front-End Load - Fees charged upfront when you invest.Anywhere from 0% to 7% max.
Back-End Load - Fees charged when you exit a fund. Also called as deferred sales charge.

Are there funds where there is no loads?.
Of course. No-Load funds do exist. These funds do not charge any fees. Most people prefer
the no load funds from the Vanguard group.

Are there other fees I need to pay in a mutual fund?
Well there are other fees like 12b-1 fees for marketing expenses and operating expenses for the fund called the expense ratio. These fees are deducted automatically from the fund and you will not need to pay them separately.

For what stocks do I need a mutual funds?
It depends on the type of investor. For most people any type of mutual fund is a necessary. It can large-cap, small-cap or mi-cap. However if you are a professional investors, then mutual funds are the way to go for small caps. It is very difficult to research and invest on your own in small cap stocks. Fund managers have easy access to lots of information and can be the trust to monitor the investment in small stocks.

Are the mutual funds regulated?
Yes. They are heavily regulated. A mutual fund has to mail you statements and annual reports as well. Some do half-yearly reports.

What are the disadvantages of these funds?.
There are some problems with investing in MFs. The loads,expense ratio etc. can eat away a good portion of your returns over the long term like 5-10 years. Other issues are that you may get adversely affected due to other funded holders’ actions, inability to make any stock selections, inability to sell profit and losses whenever needed and unable to sell anytime when the markets are open at the current price.

Cheers!!!
-David
www.topforeignstocks.com

written by David