Top No-Load Mutual Funds

Alternative Energy Mutual Funds at www.personal-finance-helpers.com

2009-09-13T11:49:00.002-04:00

The good folks over at www.personal-finance-helpers.com just posted an article on alternative energy mutual funds. In the article they give a good overview of alternative energy mutual funds that would be helpful in giving you a general idea of what they are all about.

I look forward to reading more articles at www.personal-finance-helpers.com. Hopefully they will cover no-load mutual funds in the near future.

Top Ten Reasons to Buy No Load Mutual Funds

2009-04-30T09:18:00.002-04:00

With the losses that have occurred in the stock market the last few years many companies are no significantly undervalued. Many investors know that this is a great time to jump into the market, but they are not sure what they should do with their money. Here are the Top Ten Reasons that You Should invest in No-Load Mutual Funds:

1. Mutual Funds Allow You to Diversify Your Investment

Investing in individual companies is a risky proposition. A single bad choice can have serious negative effects on your portfolio. To avoid these risks it is best to invest in a wide array of options. The typical investor simply does not have a large enough portfolio to invest in as many companies that is needed for proper diversification. Mutual fund managers, whether overseeing load mutual funds or no-load mutual funds, pool the money of thousands or investors together to great a giant portfolio with many different investments. A single company have terrible returns will only have a slight impact on the entire fund.

2. Professional Management for your Investment

Both load and No-load mutual funds provide professional invesment managers to oversee the assets of the fund. Mutual fund managers typically have the education, training and resources to make profitable investment decisions.

3. Mutual Funds are a Liquid Investment

Shares of mutual funds are considered a liquid investment. They can be traded for cash on a moments notice. Stocks and bonds are also considered a liquid investment, but their value is not nearly as stable because of a lack of diversification. Since the value of mutual funds tend to fluctuate less than individual investments that allow you to understand how much you can expect to recieve when you sell.

4. No Load Mutual Funds Provide Choices

There are numerous types of mutual funds available that invest in a wide array of products. You can find a mutual fund that invests in nearly any business sector you like whether it is financial services, alternative energy, manufacturing, retail, real estate or anything else. You can find mutual funds that invest in small, medium or large companies, in the United States or on foreign soil.

Since load mutual funds charge sales fees you are not free to change between investments without accruing fees. No-load mutual funds allow you to move your money from one sector to another without incurring extra costs thereby increasing your investment options.

5. No-Load Mutual Funds Offer Great Convenience

It is very easy to find and buy shares in no-load mutual funds. The options are nearly endless and many allow you to purchase with small minimum investment.

6. No-Load Mutual Funds Allow You To Invest More

Let's say you have $5,000 to invest. If you buy a mutual fund with load charges of 5%, you will spend $250 on the sales commission and only buy $4,750 worth of shares. With a No-load Mutual Fund you are immediately able to invest $5,000, getting more for your money.

7. No-Load Mutual Funds Allow You to Retain More of Your Earnings

Many people have complained about paying sales commission fees when the buy a mutual fund. Many companies have started charging a "back-end" load. With a back-end load you pay the sales commission when you withdraw the funds. For example, if you have a $5,000 investment in a mutual fund that grows to $10,000. If they charge a 3% back-end load you with receive $9,700 when you cash out. With a no-load fund you would receive the full $10,000.

8. No Load Mutual Funds offer Better Returns

For some reason this is a hard concept for many people to understand. On average the investments in load mutual funds and no-load mutual funds perform equally well. However, the fees you pay with load mutual funds reduce your rate of return. Let's look at an example. Let's say that there are three funds, a no-load mutual fund, a front-load mutual fund, and a back end load mutual fund. All three start with a value of $5,000 and a year later have a value of $5,500. All three will report earnings of ten percent. But what did you earn?

With the Front-load mutual fund there was a 5% commission charge at the start. You'd have to come out of pocket with $5,263 to buy that $5,000 investment. At the end of the year you have $5,500, so you're happy, but your profit is only $237 or 4.5% of $5,263.

With the Back-end load you only pay $5,000 for the $5,000 investment so you're happy with the $5,500 value. Of course with the 3% back-end fee you'll only receive $5,335. That $335 profit is a return of 6.7% on the $5,000 investment.

Now, let's look at the no-load mutual fund. Your $5,000 investment costs you $5,000. When you sell for $5,500 you receive $5,500. That $500 profit is a 10% return on your $5,000 investment.

Even though each fund may earn the same rate of return, you earn more with no-load mutual funds.

9. Re-read #8. It is Real Important and Counts Twice as Much as Anything Else I have to Say.

10. Re-read #8. It is Real Important and Counts Three Times as Much as Anything Else I have to Say.

There are the Top Ten Reasons To Buy No-Load Mutual Funds.

The Best No Load Alternative Energy Mutual Funds

2009-04-23T08:31:00.005-04:00

We’ve had many requests for the top no load alternative energy mutual funds. With development, the world’s consumption for energy is growing at a rate that exceeds the rate of growth for energy production. The situation where demand exceeds supply is coming upon us quickly and energy mutual funds should experience solid long term profits. As we all become more environmentally conscious the demand for power from renewable energy sources is growing. Here is a list of the 5 best no load alternative energy mutual funds:

Calvert Global Alternative Energy Funds (CGAEX): This no load alternative energy mutual fund contains a wide array of renewable energy and green energy funds. No sales fees and a low 1.85% expense ratio allow you to earn profits while helping to reduce pollution. Truly an opportunity to earn some green while staying green.
Guinness Atkinson Alternative Energy Fund (GAAEX): Another great source of investment in green and renewable energy. The expense ratio of 1.64% won’t bite too deeply into your earnings.
Powershares Global Clean Energy (PBD): Perhaps one of the best green mutual funds available on the market, the Powershares Global Clean Energy Mutual Funds ability to offer great diversification across the clean energy investment field is outstanding. The fact that Powershares can diversify so well with a miniscule 0.75% expense ratio is truly amazing and a credit to the fund's management.
Powershares Wilderhill Clean Energy Portfolio (PBW): This is one of the oldest alternative energy exchange traded funds available on the market and has an excellent track record of stable returns while only investing in companies within the United States.
Vanguard Energy (VGENX): If you can afford the initial $25,000 minimum investment this is one of the best no load alternative energy mutual funds that you can find. Low expenses and double digit returns are the norm with this fund.

Whether you’re looking to invest in clean, renewable energy to earn a profit or help protect the environment you can’t go wrong by investing in these five no load alternative energy mutual funds.

Selected American Shares (SLASX) Views on Johnson & Johnson (JNJ)

2009-04-17T12:26:00.002-04:00

Christopher Davis, co-manager of Selected American Shares (SLASX) is known for taking very long-term positions in the companies that he purchases, regardless of short-term outlook and price fluctuations. When he recently discussed his views on Johnson & Johnson (JNJ), which has declined in value by 23% in the last 12 months he stated "Do I think J&J is much riskier, the earnings prospects worse, or its competitive advantage lower? No, I don't think so."

Selected American Shares (SLASX) invests heavily in strong and sturdy companies that are leaders in their fields. Johnson and Johnson is still considered a leader in its field, has strong financial statements, and should be able to weather the current economic downturn.

Selected American Shares (SLASX) also invests in companies that are cash rich, and in position to repurchase its shares from the market or acquire rival companies for future profits.

A third investment strategy of Selected American Shares (SLASX) is to purchase stock in companies that have depressed prices due to negative headline news and low consumer confidence, but with potential for long-term profits. This is a view that allows them to “buy low and sell high” for the most profits possible. In today’s market these stocks include the financial sector.

Despite recent loses Selected American Shares (SLASX) continues to be one of our top no-load mutual funds for long-term investment.

Baron Small Cap (BSCFX)

2009-04-14T13:45:00.002-04:00

Cliff Greenberg, manager of the Baron Small Cap fund (BSCFX) has been buying stocks of high-quality companies with growth potential at greatly reduced prices. Short-term earnings have remained flat, but long term outlook is optimistic. According to Greenberg, the markets won’t bounce back until “the world rights itself.” He is unwilling (or unable) to make a prediction of when this will be.

One of the stocks that Baron Small Cap (BSCFX) has been purchasing is Covance (CVD) which is currently trading for $39.21, with a 52 week high of $99.08. The company’s 52 week low was $31.43. Covance (CVD) provides research services for pharmaceutical companies and Greenberg expects the big drug companies to increase the amount of research services that they outsource. This should lead to increased revenues for Covance (CVD) and a rebound in stock prices.

The chart above shows how Baron Small Cap (BSCFX) ten year annualized return of 4.15% compares to has compared to the S&P 500 over the last ten years, even after suffering through its worst year in 2008.

Selected American Shares (SLASX)

2009-02-10T08:03:00.004-05:00

Our search for the top no loan mutual funds continue with Selected American Shares (SLASX).

The age old motto of investing has been “Buy low, Sell high.” This makes absolute sense when you think hard about it. Getting something cheap and selling it for a higher price is a sure way to make profits. Christopher Davis and Kenneth Feinberg, the co-managers of Selected American Shares (SLASX) understand this concept fully and are using it today to create long-term profits. Many people are afraid to invest in the stock market now because of the dramatic drop in value that many stocks have seen, but Davis puts this in perspective by stating that “lower prices today will create higher returns in the future.”

Sticking with, and possibly purchasing more stocks of companies that are temporarily falling in value can be stressful at times. Over the past 12 months Selected American Shares has dropped 39%, or two percentage points more than the Standard & Poor’s 500-stock index. As on February 6th, the fund has already lost 6.4%, trailing the S&P 500 by almost three percentage points. In the last five years the fund is down 4.1% per year, falling 0.6 percent per year behind the S&P 500 index.

Looking at these numbers can scare an investor, but it is important to note that Selected American Shares (SLASX) has the objective of long-term profits. In the investment world five years is not a long time. Over the past ten years the fund has provided completely flat results, which in fact beats the S&P 500 by 2.7% per year, placing it in the Morningstar’s top 17% of large-cap blended funds.

A scaled down version of Selected American Shares (SLASX) is the Clipper Fund (CFIMX). The Clipper Fund holds stock in fewer companies than Selected American Shares (SLASX), 24 compared to 103, and therefore sees greater fluctuations in value. Recently most of this fluctuation as been downward, but the potential for a long-term rebound is even greater.

So far Selected American Shares (SLASX) worst performer has been American International Group (AIG). The shares price has plummeted from close to $60 to practically zero. Another significant loser held by the fund has been Bank of America.

Currently, Selected American Shares (SLASX) is buying companies with balance sheets that are strong enough to whether these hard economic times and will have the ability to increase prices when inflation picks up as expected. Some of Select American Shares (SLASX) includes Hewlett-Packard (HPQ), Schering-Plough (SGP), Microsoft (MSFT), Proctor & Gamble (PG) and Johnson & Johnson (JNJ). The fund managers consider these to be defensive stocks that are expected to perform better than cash.

Selected American Shares (SLASX) is also optimistic about established companies that have large amounts of ready cash. The managers figure that these companies are in a position to buy back their own shares or possibly acquire rivals in their industries.

Selected American Shares (SLASX) is heavily invested in the Financial Services sector, which accounts for 30% of the funds portfolio. Co-manager Christopher Davis says banking "is probably the second-oldest profession. There has never been less competition in the banking industry, or more universal disdain for the financial industry." Some of Davis’ favorite companies include American Express (AXP), Goldman Sachs (GS), and Wells Fargo (WFG).

Selected American Shares (SLASX) still remains one of the top large-cap, no-load mutual funds that you can buy, even considering its terrible short-term returns. The managers of the fund are great at finding strong companies at great values and buying their stock at low prices. The stocks that they buy are held for long periods of time. They hold the average stock in their portfolio for 12 years, creating just an eight percent turnover rate.

The low turnover rate of Selected American Shares (SLASX) helps keep expenses relatively low. If you buy the fund through online brokers you can expect an expense ratio of 0.88%. There is a share class available directly from the company (SLADX) shows an expense ratio of just 0.57%. By calling 1-800-243-1575 you can purchase the direct shares of Selected American Shares (SLADX).

Baron Small Cap Fund (BSCFX) Stock Holdings

2009-01-01T15:53:00.000-05:00

Baron Small Cap Fund (BSCFX) has been managed by Cliff Greenberg since its inception in September 1997. Greenberg says he looks for “one-off ideas.” Basically, he looks at individual companies separately instead of investing by index or sector trends. The approach has been working as Baron Small Cap Fund (BSCFX) has continuously beaten the market.

Generally, Baron Small Cap Fund (BSCFX) avoids technology and bio-tech stocks because future profitability is difficult to determine. He prefers to stay within consumer businesses such as housing and education as their income is more transparent and predictable. He typically holds the investments in the portfolio for three years or more.

The top 25 holdings for Baron Small Cap Fund (BSCFX) as of January 1, 2009 are shown below:

STRA Strayer Education, Inc. Net Asset Value 3.07%
BLUD Immucor, Inc. Net Asset Value 2.72%
TDGTransdigm Group, Inc. Net Asset Value 2.64%
CVA Covanta Holding Corporation Net Asset Value 2.62%
FLIR FLIR Systems, Inc. Net Asset Value 2.56%
CLH Clean Harbors, Inc. Net Asset Value 2.42%
PENN Penn National Gaming Net Asset Value 2.40%
SBAC SBA Communications Corporation Net Asset Value 2.22%
EQIX Equinix, Inc. Net Asset Value 2.16%
CPLA Capella Education Company Net Asset Value 2.10%
AMT American Tower Corporation A Net Asset Value 2.10%
DLR Digital Realty Trust, Inc. Net Asset Value 1.96%
MASI Masimo Corporation Net Asset Value 1.88%
ACM AECOM Technology Corporation Net Asset Value 1.76%
EXP Eagle Materials, Inc. Net Asset Value 1.76%
ICON Iconix Brand Group, Inc. Net Asset Value 1.75%
AVAV AeroVironment, Inc. Net Asset Value 1.67%
HURN Huron Consulting Group, Inc. Net Asset Value 1.57%
RBA Ritchie Bros. Auctioneers, Inc. Net Asset Value 1.53%
IT Gartner, Inc. A Net Asset Value 1.49%
HEI.A Heico Corporation A Net Asset Value 1.48%
MVL Marvel Enterprises, Inc. Net Asset Value 1.47%
IDXX Idexx Laboratories Net Asset Value 1.46%
ATU Actuant Corporation A Net Asset Value 1.45%
DTSI DTS, Inc. 1.42%

These 25 stocks account for 49.66% of the holdings in Baron Small Cap Fund (BSCFX).