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  • What are the best mutual funds

    What are the best mutual funds

    For the smart options for mutual fund investment now the steps are essential. You need to be specific on this part. For that you need the best deal.

    The ranking with the best funds you find on other sites is a misleading exercise because it doesn’t help you understand how to invest your money but it is a pure vanity metric that often hides many problems. If you are looking for a ranking because you are an advanced investor and you feel you do not need advice, you will hardly find it here.

    Is it worthwhile or not relying on this strategy to invest your money?

    If, on the other hand, you are interested in understanding if it is worthwhile to invest in funds, keep reading because there is so much information useful for you.

    Investing in funds often is not worthwhile

    The mutual fund investment are most of the times a bloodbath to the detriment of the customer organized by the bank and management company, with the aim of putting your hands in your pockets even when the instrument does not makes them incapacitated.

    It will seem a harsh opinion, which among other things contrasts with what your financial promoter will have told you, very interested; thanks to the generous commissions he will put in his pocket, to direct you towards this peculiar investment tool.

    Unlisted actively managed funds : they are the worst because they are not traded on the stock exchange (consequently, they are less liquid for you) and have higher commissions without offering better returns than the market;

    Actively managed listed funds: more transparent and liquid than the former, they often have entry and exit costs and management costs that are too high to justify returns in line with the markets;

    Passive-managed funds or ETFs: these are the ones I prefer because there is no management company that tries to beat the market but the fund simply replicates the reference benchmark. You can learn more about this in the article where I explain how I invest .

    After that, let’s go ahead: below I offer you 5 tips for investing in mutual funds , giving you some tips also and not only to recognize those who, in a frankly bleak landscape, could actually improve the composition of the portfolio.

    Funds almost never perform better than market benchmarks

    When you are buying shares in a mutual fund, you are trying to beat the market, otherwise you would rely on particularly differentiated indices or ETFs to bring an aligned return on this or that market.

    Things unfortunately are not always the case, in the sense that in 90% of the cases the mutual funds perform worse than the benchmarks of the reference market. Yes, although there is a management company of sapientini and pundits, ready, they say, to intercept trends first and foremost.

    The chatter, however, as is often repeated, is zero, and it is to the rates of return on investment that we must look: the returns are, and it is precisely the paper that sings, lower than the market averages, even before inserting into the equation the substantial management commissions that this type of tools incorporate.

    Differentiates, but only on solid markets

    The differentiation is a concept as basic as often misunderstood accomplices’ also conflicting information that comes to those who are not exactly in the industry.

    To differentiate means to have a portfolio made up of different securities by geographical origin, risk profile and sector. It is of little use to differentiate on different energy raw materials, on shares of the same sector (banking, tech, etc.), or between bonds of countries that have broadly the same trend. The differentiation must first of all be true, and protect us from the collapses of the sector. Secondly it must be solid, because in the name of differentiation we cannot include rubbish in our portfolio. The funds in this sense can certainly help us, provided we know what and why to choose.

    Often the differentiation offered by mutual funds is only apparent, in the sense that portfolios of securities from the same sector are offered, which never protect us from the risks that an unsorted portfolio has inherent in its construction. Before choosing a good mutual fund, check the composition and the rules that the management company has given itself in order to change the portfolio itself.

    ETFs differentiate and cost less

    ETFs can be a good compromise because they offer you:

    The replication of indices that by their nature are already differentiated: think of an ETF that has a predominant component of the US stock market – it will have in the reference basket tech, heavy industrial, energy, financial and banking stocks;

    Extremely low commissions, which in some cases are even 90%, lower than those that are practiced by mutual funds;

    The possibility of selling the shares through regulated markets, or through markets those are identical to the stock exchange, for greater liquidity and greater ease of management.

    By choosing ETF vouchers, you can have all the positive sides of mutual funds, without exposing yourself to the most common problems that concern the management of actively managed funds.

  • Smart Decisions for equity investment As Required

    Smart Decisions for equity investment As Required

    The equity investment or portfolio investment is an investment of cash in shares of companies that are registered as open or closed joint stock companies.

    Equity investments allow you to receive a part of the joint-stock company’s profit equal to the proportion of the shares held by the investor, as well as to receive part of the property that remains after the liquidation of the joint-stock company in case of bankruptcy or for other reasons.

    Ways to invest in equity

    To date, there are several ways to invest in equity, the most common are two: buying shares in an enterprise on an exchange or from a third-party investor. Shares of a company can be sold on the stock exchange only if the company is registered as an open joint stock company (OAO). Buying shares from shareholders is possible only when shareholders wish to sell their securities. Usually, the maximum offers for the purchase of shares are observed in periods of economic restructuring and crises.

    The third method involves the acquisition of shares at the time of the additional issue of securities by the joint-stock company. In this case, the shares will be offered for sale at higher prices compared to stock values, but this will allow investors to immediately invest a large amount of capital.

    Equity investment objectives

    Equity investment can be aimed at receiving passive income or one-time large profits. Having bought out the share, the shareholder has the right to receive dividends on shares annually or more often (part of the profit, which is equal to the share of the purchased shares). Receiving dividends is one of the most common forms of passive income, when an investor receives money without personal participation in paperwork.

    Getting a large amount of profit at the same time most often occurs through speculation. Buying shares of companies that recently entered the market; the investor reserves the right to resell the shares. If the security rises in price, the shareholder can sell it, the difference between the sale price and the purchase price will be a profit. Sometimes profits from speculation can be impressive.

    In addition, the purpose of investing in equity capital may be the desire to repurchase the whole joint stock company. Considered investments allow for the redemption not immediately, but gradually, without risking all the capital.

    Equity is the tool of choice for investment in startups for professional investors. Both business angels and venture capitalists rely on this form of participation in financing, as an investment has benefits for both investors and startups. Therefore, all stakeholders in the industry – startups, crowd investing platforms, business experts and consumer advocates – agree and plead for investments in real GmbH shares. It comes at no surprise that companies alike to SoFi offer advice on how to invest in different avenues, including fractional shares.

    The equity financing is a form of corporate financing, in which the money comes from the owners of the company. As the name suggests, the company is financed by its own funds.

    Financing gives a company the opportunity to start or make larger purchases within the company without having to resort to lending.This type of financing reduces direct assets but at the same time increases the company’s equity and its corresponding value. Here, a distinction is made between the internal and external capital, which is spent on the investment.

    Equity in the company

    While in the private sector most of the expenditures are financed by own financial resources at best and only in rare cases larger loans are taken up, in the enterprise also the leverage pays off.

    The debt, which comes from loans for larger companies, measures itself quickly with success and can be procured just as quickly, so that in a short time can be invested.

    Equity, on the other hand, is generated by the entrepreneurs themselves and, in the event of any loss, is coupled with a risk to the company.

    On the other hand, increasing self-financing always results in an increase in equity.Only companies that seek equity security are successful in the long term and accordingly receive debt as needed.

    Surpluses are usually funds that can be used for equity financing. The surpluses are those that are retained and transferred to the business assets. Whereas, however, the dissolution of hidden reserves to increase equity is possible.

    Advantages and disadvantages of self-financing

    The advantages of self-financing are the reduced risk of over-indebtedness, the reduced risk of bankruptcy and the greater independence of the company.

    However, one of the disadvantages of equity financing is that equity capital is very expensive in the longer term and cannot be deducted for tax purposes.

    The investors, who participate with an equity capital, usually demand risk premiums. In a sense, they protect themselves against a total loss, such as in the insolvency of the company.

    When will equity finance be used?

    Generally, the rule is that companies should buy long-term value through equity or long-term debt. Accordingly, buildings, company properties or large machinery should be added to equity or financed very cheaply in order to make a profit.

    In contrast, part of the current assets is covered by borrowed funds, so it does not have such a severe impact on business assets.

  • Tips before launching your e-commerce

    Tips before launching your e-commerce

    If you are going for the best financial endeavor and be your own boss then it is for sure that you would get the best of it. In US this is the most important part.

    Are you preparing to launch your e-commerce? So welcome to this article where we will give you some valuable tips to better begin this new adventure. In addition to following current trends , discover 8 tips for starting your business successfully!

    1. Study the competition

    Evaluating your competitors will be a first step in finding out how to stand out and tackle the growth of your e-commerce. Faced with 157,300 French merchant sites, you must analyze your strengths and weaknesses, to implement a different and effective strategy. This is your best chance to succeed!

    1. Choose the e-commerce solution adapted to your needs

    The platforms to create your online store are not lacking! Study all the tools at your disposal, their advantages and disadvantages, to select the one that best suits your needs and your skills in web development. If you opt for an e-commerce CMS, answer our quiz to discover which is the most adapted to your needs. You can actually be your own boss and come up with the options.

    1. Organize your SEO and marketing strategy

    From the beginning, you must find the line of communication adapted to your activity. Depending on your target and the products sold, you must think about an editorial line that incorporates notions of SEO and a commercial aspect.

    The definition of your editorial strategy begins with an analysis of the keywords used by your consumers. You have to find the terms that they will enter search engines, to find targeted phrases that will bring qualified traffic to your e-commerce. Also think of long-tail keywords (more than 3 words) because they are often less competitive and drain visitors of higher quality.

    When you have defined the terms on which you want to position your store, you must write the pages and the product sheets of your e-commerce. Remember to embed keywords in strategic places like headlines, subtitles, images, etc. Finally, the selected expressions should also be found in the different contents of your blog. It is also the latter that will bring you the most traffic and help you boost your visibility in search engines.

    1. Develop your community

    Why wait until your e-commerce is online to communicate on social networks? The sooner you ensure the communication of your project, the faster you will make the turnover. Start now to create profiles on social networks and publish articles on collaborative blogs to publicize your name and future products. When you open your merchant site, you will have already acquired some consumers.

    1. Create a blog to talk about your project

    This will help you to grow your community, but also to get your site up in the search engine results. Indeed, the blog will influence your SEO and, at the time of the official opening of your online store, you will already be positioned on strategic keywords.

    1. Collect email addresses

    Prepare a prospecting file already by offering your readers the opportunity to subscribe to your newsletter. To ensure the success of your official opening, you can send all your loyal subscribers an email announcing the launch of the site and, why not, give a discount code to thank them for their support during the implementation of your project.

    1. Check the 50 points of our checklist

    In another article, we proposed 50 points to check before opening your e-commerce to users. This is the moment to consult this super checklist!

    1. Find a provider for creating your e-commerce

    To be certain that your merchant site is operational and you quickly earn profits, entrust its realization to a specialist. On Encoder, you will find many ecommerce developers willing to realize the shop of your dreams. Post your ad quickly with the outline of your specifications and find the ideal freelance!

    Tips to make your point of sale more attractive thanks to its showcase

    Your showcase is the image of your business. First contact with customers, she plays a key role in the purchase process. Today, Message in a Window has decided to give you its pro tips to attract customers and trigger the act of purchase.

    Build your universe

    The environment in which we are at the time of purchase influences us. It is therefore important to create your own universe through the theatricality of the point of sale.

    But what does it really consist of? The theatricality of the point of sale is a particular and even spectacular staging of the store’s product offering. The objectives are simple: trigger the act of purchase and bring and return the customer in your business. Creating a captive atmosphere is essential! For that it is important to look after the attractiveness of your store, and that says attractiveness, says showcase!

    Treat the presentation of your showcase

    Did you know, your storefront generates between 8,000 and 80,000 views a day depending on your location. When you know that the peek of a passerby lasts only a few seconds it is imperative to look after his shop window to capture the prospect’s attention and attract him to your business. At first glance, your future customers must be able to identify your offer , understand how it is different and why they should enter your store.

    Less Is More: Simplicity & Minimalism

    Too many choices kill the choice. Do not reveal all your weapons! There is no need to display all of your store in full view. If you overload your window, you smother and confuse the message you want to communicate to the passer-by. The ideal is to favor only one to five different products and bet on a simple and uncluttered showcase, while placing your products at eye level.

    Conclusion

    With these 8 tips, you know how to approach your e-commerce project in broad outline. After finding a web partner to help you in this incredible adventure, you can start communicating about your future baby and then launch your business successfully!

  • Saving money: Tips for more money at the end of the month

    Saving money: Tips for more money at the end of the month

    For the money saving tips you need to be strategic in every possible manner. You need to be specific when addressing the entire process of work.

    The view of the balance at the end of the month causes discomfort for many people, because often than just the money reserves are drawing to a close. We’ll tell you how to save more money so you can check your balance without worries.

    How you can save money

    Everybody has a wish that he would like to fulfill in good time. What are often missing is time and the necessary financial reserves. Here’s how to plan your time better. How you can save money, you can find out below.

    There are many areas where you can save money. In some cases, there are small amounts; in other cases you can save several hundred euros over months. Small changes seem hardly worthwhile at first. But if you count the savings together for months, the change has paid off. It will be even more rewarding if you change many little things. After a year you will notice how your savings add up and you get a financial buffer.

    The smallest changes can do a lot. Your quality of life will not suffer from these changes. When you realize what you can do with your savings, you realize that you can even improve your standard of living. You could for example:

    • Pay off your debts
    • Go off on holiday
    • To fulfill a long-cherished wish
    • Give a present to your sweetheart

    So you can go through life carefree, make yourself and your loved ones happy. It will give you more pleasure to spend your money on these things than to waste nothing for the entire month. Saving money also ensures that you live more consciously and think about your consumption. For the money saving tips the followings are also important.

    Saving money in the household & in everyday life

    In the household, there are some things that you can keep in mind to save money permanently. Many changes you will not notice, others are fast becoming routine. What you’ll notice are the positive changes in your wallet.

    But only in the household, but also in the normal everyday life, you can save a lot of money. If you notice a few simple things and consciously consume them, you can relieve your wallet.

    Change supplier

    If you want to start saving money, it’s worth looking first at your ongoing contracts. These include electricity and gas providers and your DSL tariff. Compare the contribution you pay to other offers. If these are cheaper, you should change providers as soon as possible to avoid losing more money.

    Save money with free checking account

    Many people have had the same account at “their” branch bank for decades – and pay unnecessary fees for account management and wire transfers, which are not charged by direct banks without thousands of costly branches. There is enormous potential for savings here, which is only associated with a small one-off effort – registration with the new bank, changes to direct debits and permanently brings enormous savings without compromising on comfort.

    When selecting a direct bank, the availability of free pick-up options should be ensured. If you have to pay high fees for every purchase of cash, the apparent cost advantage of direct banks over branch banks can quickly turn around.

    Affordable insure with direct insurance

    Similar to utilities and the bank account, many people are still stuck in old and expensive contracts with vendors with a costly network of branches and agents who pay dearly for contracts. The change to a direct insurer promises here beside cost savings of fast several hundred euro in the month also a large comfort plus, because with inquiries and in the insurance case the solution is often only a mouse click or a short telephone call away.

    Save money with cheaper credit

    If the end of the money is still a lot of month left or unplanned expensive purchase pending, your account balance will slip into the downside. The result: expensive overdraft interest.

    If you have a larger spend, or you want to balance the checking account and avoid the excessive interest rates, there are two recommended ways to save money for different needs.

    Reduce power consumption

    In the household you need a few large devices that can eat a lot of electricity. These include dishwasher, fridge, freezer and washing machine. They can already account for one fifth of the total electricity consumption. With some tricks you can reduce the power consumption of these devices.

    In addition, you can make sure that you turn off some devices completely and does not leave in standby mode. For this you pull the plug the best. It also offers connectors with integrated switch, with which you can easily remove devices with a push of a button power. This is useful, for example, in televisions, coffee machines, dryers and washing machines.

    There are many small things that you can change to reduce power consumption. If you switch to LED energy-saving lamps, you can already lower your electricity bill by a few percent. It is also effective if you think about your consumption. Many people tend to use multiple electronic devices at the same time. While the TV is on, they are surfing the internet. The TV often works casually without anyone paying attention to the program. If you only turn it on, if you want to actively watch a show, or even think about your general television consumption, you can lower your electricity bill.

  • How do you create wealth? What makes the difference?

    How do you create wealth? What makes the difference?

    How do you create wealth when everyday reality is made of uncertain work, a fixed salary, a mortgage to pay, bills that expire and children to support? Here are the wealth creation tips for you.

    Hearing someone who has already created the wealth, everything seems simple: you have a passion, you create a product that gives value to your audience, you create a system that generates income as passive as possible (that is, disconnected from the concept of money in time) and constantly invest what you earn. Then let the magic of compound interest do the rest.

    Going to tell someone who is struggling for daily survival ” change, follow me, do as I do and you will see that you too will be able to create your wealth”,  risks unleashing at least some insults. And rightly so!Not everyone wants, and it is very respectable, but even if they wanted to, not everyone can or can do it. Here are the wealth creation tips for you now.

    Exchanging wealth and poverty what does it do?

    Rich House, Poor House is the title of the British reality I saw. If you are curious in Italy you find it as Home Exchange. The format is this: two families, one belonging to the poorest 10% of the English population and the other to the richest 10%, exchange home, life, and habits and above all budgets for a week.

    How will they react to this experience and above all what will they bring back when they return to their respective lives on the eighth day?

    Two premises:

    These are usually large families, with at least two or three children

    The rich, at least in the two seasons, are all rich and not well-off by birth

    The first day that the respective houses and lives are exchanged, after the initial shock of finding homes that are very different from the usual ones, each family finds out how much money it can count for the week. In a box in the kitchen are enclosed the cash that the family will have available to eat, warm up, get gas, go out and face the unexpected.

    The poor, who happen to be in the house of the rich, have a weekly budget ranging from 1700 to 2000 pounds.

    The rich, who go to the house of the poor, usually find in the kitchen jar no more than 140/170 pounds.

    Thus, the week begins and our two families live each other’s lives.

    The poor have more difficulty adapting to being rich than vice versa

    Although relieved by the thought of how to make ends meet for a whole week, poor families have great difficulty accepting abundance. They feel they do not deserve what they are enjoying. They take a few days before being able to let they go and even in enjoying a good dinner at the restaurant they are a prey to guilt. In shopping, they rarely manage to afford the luxury of buying what they normally can’t afford, but they greatly appreciate the opportunities that rich life gives their children. In particular the possibility of developing their talents.

    Thanks to the excellent lessons after school, sports of all kinds and other engaging activities, the children of poor families, in that week, have the chance to test themselves in everything they wanted to do but did not even dare to ask: lessons of music, repetitions, dance classes, horseback riding, sailing, tennis. They breathe environments that exude quality, beauty and possibilities.

    Rich families have a clear control of expenses and they engineer themselves

    All the families I observed, although they used to spend ten times more than the available 150 pounds, were able to carefully manage every penny. From the first day they drew up a plan and had control over how much to spend on every need.

    On some occasions they also found ways to solve some problems of the poor family. In one case, for example, the new tenant realized that the gas tariff paid by the poor family was higher than that applied to him in his rich home and he managed to change the contract.

    On another occasion the rich family freed the lawn of the house occupied by the rubbish of others, including an old sofa. Having no means of transport available, if not a bicycle, and not wanting to pay the withdrawal fee for the 70 pounds dump, the family reduced the sofa to pieces using hammers, knives and kicks. Then, dividing the weight into various garbage bags, parents and children walked a few kilometers towards the landfill.

    Rich families, in living a week as a poor, understand the value of closeness

    In the week as poor, the children of the rich find themselves without extra-curricular commitments or opportunities for exit because there is not enough money or because the house is located in unsafe areas. At that point, parents and children strive to spend time together at home.

    Many realize that the closeness, even the physical one to which they are forced and the time they have to pass without particular occupations, reconnects relationships, allows comparisons and strengthens affections.

    Doing things together, when there is love, is worth more than any designer shoe. In this case, therefore, money does not bring happiness, although it undoubtedly alleviates worries.

    The poor see a possibility they could not imagine

    During the week of screw exchanges, each family meets the other’s friends and begins to learn about each other’s stories. The rich discover the difficulties and the life of sacrifice of the poor, the poor discover that the rich have not always been such. Some started from worse conditions than their own, and then built successful businesses, careers and economic well-being for themselves and their families. Seeing a positive example gives hope to the less fortunate, a goal that seems feasible, especially for their children.

  • The Pros and Cons of Taking a Business Loan

    The Pros and Cons of Taking a Business Loan

    The occurrence of overdue loans may be the result’s overestimation of his financial stability and solvency when deciding whether to receive a loan. There comes the work of the Distressed Loan Advisors.

    No matter for what reason a delay arises; the Bank is not concerned, which should be considered fair. If a delay arises for a borrower, negative consequences will arise in the procedure of charging penalties, issuing payment requirements for invoices, direct debiting money from accounts, etc.

    But, having violated obligations under a bank loan agreement, the borrower does not become powerless, and the Bank does not gain absolute power over the borrower and its assets. Moreover, changes in legislation in the last few years are aimed at improving the situation and protecting the rights of borrowers. The work of the Distressed Loan Advisors comes there.

    The Bank is entitled to:
    • To charge a penalty on overdue amounts of debt in the amounts provided by the bank loan agreement.In respect of individuals, the size of penalties may not exceed 0.5% of the amount of overdue payment within 90 calendar days of delay and 0.03% of the amount of overdue payment after 90 calendar days of delay. In this case, the total amount of the accrued penalty shall not exceed 10% of the amount of the loan issued for each year of the bank loan agreement.In respect of legal entities, the limit of the penalty amount is not fixed by law.
    • Require early repayment of the loan subject and the remuneration due in cases providing by the legislation. With regard to the occurrence of overdue loans, such a right with the Bank arises when there is a delay of more than 40 consecutive calendar days.
    • To foreclose on the pledged property in a compulsory pre-trial procedure, if such procedure is only if the terms of the pledge agreement.
    • To impose a penalty in an indisputable (without acceptance) order on the money held in the accounts, if such a right is stipulated in the bank loan agreement.It is not allowed to foreclose on benefits and social payments paid from the state budget, housing payments, money placed on accounts in housing savings banks in the procedure of housing construction savings, money allocated as an educational savings deposit.The amount of non-withdrawal of money from the accounts of individuals is limited by law 50% of the amount on the account and of each amount that will be transferred to the account in the future.
    • To recover arrears in a judicial procedure and to foreclose on the collateral property (if the loan is collateral).
    Assign the rights under a bank loan agreement to a collection agency, a special organization to improve the quality of the loan portfolio or a third party or to transfer to them the authority to collect the debt. This right arises for the Bank only after 90 calendar days for a loan issued to a distinct and after 180 calendar days for a mortgage loan issued to an individual. The suggestions would get from Distressed Loan Advisors.
    At the same time, in exercising their rights to collect overdue debts, the banks bear the associated duties, which many do not know about.

    The bank must:
    1. If a loan arises, but no later than 30 days from the date of its existence, notify the borrower in the manner and within the time period stipulated by the bank loan agreement about the need to make payments under the bank loan agreement indicating the amount of overdue debt and the consequences of non-fulfillment of its obligations.
    2. Consider the proposals of an individual on the settlement of overdue debts and give a written reasoned response within 15 calendar days.This legal provision carries an unobvious, but very significant plus for the borrower, since the legislative provisions of the Bank’s obligation to send a written review can be corresponded with the provisions of the Civil Procedure Code. In the event of a late response by the Bank or ignoring the borrower’s application by the Bank, violation of a direct statutory duty may serve as a basis for returning the claim or awarding court costs in favor , regardless of the outcome of the proceedings.
    3. To send the incoming money to pay off the debt on the loan of an individual in the following order:
    4. Up to 180 consecutive calendar days overdue: overdue principal, interest overdue, penalty, principal, remuneration, collection costs (receivables)
    5. After 180 consecutive calendar days overdue: overdue principal, interest overdue, principal, interest, interest, collection costs (receivables)

    The bank is prohibited:
    To demand payment of the remuneration accrued during the period when the debt was in operation at the collection agency, and also charge a penalty (penalty, penalty) for the late repayment of the principal debt and remuneration during the specified period.
    To capitalize overdue remuneration, penalties (fines, penalties) to the amount of the principal debt when changing the conditions for the execution of a mortgage housing loan agreement issued to an individual, or issuing a new loan in order to pay off an individual mortgage housing loan.

    Conclusion:
    So, the duties of the banks were also expanded as a result of legislative changes, and also for the banks, additional bans were imposed on the use of tools for restructuring and charging fees and penalties in respect of certain groups of borrowers. Knowing the above limitations can be very useful for borrowers, both when assessing the Bank’s ability to settle overdue debts at the pre-trial stage, and at subsequent stages of relationship development.