Why Mutual Funds Make Sense To Most Investors?

Mutual funds have been increasing in popularity over the past couple of years as investment vehicles due to a wide variety of reasons. Richard Cayne of Meyer, a leading financial consultant in Asia, offers insight into some of the top reasons that have made mutual funds a popular pick for investment portfolios and which could help new investors decide whether it is the right choice for them or not. Mutual Funds essentially work on the premise of a pool of funds that is collected from assorted investors, so that it can be invested in a particular security for periodic monetary gains.

According to Richard Cayne Meyer, one of the greatest benefits of investing in mutual funds is that it is managed by a specialist. Every experienced fund manager, or portfolio manager as they are called, has in-depth knowledge of the various securities available in the market for investment that would fit right in with the strategy of the investor. Such ready access to professional advice makes the decision-making process for investors that much easier. Richard Cayne Meyer mentions that with such instant access to a wide assortment of stocks and bonds, coupled with the expert advice of the portfolio manager helps investors benefit manifold as compared to if they were to invest in individual stocks.

Richard Cayne Meyer mentions that the second most important factor that makes mutual funds so lucrative is their liquidity. With the option to withdraw funds at regular intervals or even have them simply deposited into your bank account makes them an investment option that offers convenients.  In addition, Richard Cayne Meyer explains, that with the option to begin investing at as low as $250 a month, which can further be directly debited from your account or credit card, it can be fairly hassle free.

Richard Cayne Meyer goes ahead to mention that mutual funds offer diversification along with transparency, making them a sound choice for most individuals. Since the portfolio manager makes the decision to invest in certain types of securities on the basis of your risk tolerance levels, investment goals as well as various market pros and cons, it takes the edge off having to take the time out to research and decide how to create a balanced portfolio. Richard Cayne Meyer further adds that offer documents such as the prospectus offer in-depth details regarding the fund’s performance, fees, entry and exit load charges, shareholders and much more, giving investors a clear picture regarding what they can expect from their mutual fund managers and what kind of an investment they are getting into. Such clarity coupled with professional advice helps make mutual funds a sound choice.

Richard Cayne Meyer originally from Montreal Canada currently resides in Bangkok Thailand and runs the Meyer Group of Companies.  Prior to which he was residing in Tokyo Japan for over 15 years and is one of the founding members of Asia Wealth Group Holdings Ltd a London, UK Stock Exchange Financial Holdings Company. 

Meyer International Richard Cayne Basic Tips for Beginners Investing In Mutual Funds

Lack of knowledge and information on how and why invest in mutual funds can create disastrous results for the newbie investors, says Richard Cayne. On the other hand having proper knowledge, availability of reliable information and guidance and taking right decisions at rights times can bring huge profits to those who invest in mutual funds. Those who are new to mutual fund investments should take care to learn certain basic tips that will help them achieve profitable results.

Enhance Knowledge – According to mutual fund investment consultant Richard Cayne, the first step that all newbie investors looking at investing in mutual funds need to take is to enhance their knowledge before stepping into the market and taking any investment decision. Now-a-days, it has become quite easy and convenient to gain knowledge on almost everything from the comfort of your home because of presence of the World Wide Web. This umbrella of the internet possesses some important websites that can help anyone to update and enhance his/her knowledge and information on mutual funds. So spare some time and do your own research so that you get the basic information on mutual funds.  Just don’t believe everything you read on the web.

Decide Proper Asset Allocation

It is very important to have a balanced portfolio and choosing the right kind of asset allocation can really make all the difference between a portfolio that follows the indexes and one that really outperforms. Asset allocation is all about investing your capital in various investments with the apt blend of different financial products that compliment one another rather than just performing like one another.  For example some hedge funds can take shorts positions in the markets so that if the respective financial instrument drops in value then the hedge fund can make money from this.  Adding in some funds that can make money in bad times as well as the funds in your portfolio that can make money in good times may achieve a higher overall return and shelter your portfolio somewhat when the markets get bumpy.

Choose Right Funds

You will find that there are various types of funds available in the market some with very high minimums. Hence you need to take the right decision in terms of what your expectations are and what is available which will work with your financial plan. For example, ask yourself that what your financial objectives are, do you want to invest for your retirement or for the education of your child or for some other purpose, over what time frame do you expect what kind of return and how your tolerance to risk may be.   Richard Cayne having lived in Tokyo Japan for over 15 years and as Investment advisor at Meyer Asset Management Ltd says that expectations and understanding ones risk tolerance levels are incredibly important and working with the right financial advisor or consultant that can help you determine what your expectations and risk tolerance levels are is crucial.

Monitor Constantly

According to Richard Cayne Meyer Asset Management Ltd’s Asian based servicing arm Meyer International in Thailand, the newbie investors in mutual funds should understand and realize the fact after they make their initial investment close monitoring and evaluations are needed to make sure that the strategy is performing both in line with your expectations and risk tolerance levels.

Take Help of Financial Advisors

Take help and advice from reliable financial consultants says Richard Cayne Meyer International in Bangkok. These knowledgeable and seasoned financial advisors not only help the mutual fund investors make the right investments but they also help in monitoring the various investments. Experienced financial advisors should keep their clients updated about the performance of their investments and provide ongoing advice with periodic reviews.

Richard Cayne founded Meyer Asset Management Ltd and is Managing Director of Meyer International Ltd the Asian based servicing arm for the Meyer Group.  Richard has over 15 years' of experience in Japan, beginning with a short assignment at Sony before changing his career path to wealth management where he gained much of his market knowledge and experience in servicing the wealth management needs of the Japanese market. Richard is Canadian and speaks fluent English and French and has a working knowledge of Japanese.  The Meyer Group is part of Asia Wealth Group Holdings which is a publicly traded company listed on the PLUS Stock exchange in London UK.

Why You Should Invest in Mutual Funds, explains Richard Cayne at Meyerjapan

Let us start by explaining what a mutual fund is. A mutual fund can be defined as a company, which invests in a diversified portfolio of securities. Saving & investing become simple and easier with mutual funds. The owners of a mutual fund are those people who buy the shares of a mutual fund. The investments of these people provide money for a mutual fund to purchase securities. The fund can make money from its securities through two methods. Either the dividend/interest is paid by security to the fund or the security itself rises in value. It is also possible that the fund drops in its value or loses money. According to Richard Cayne, there are many reasons why investing in mutual funds is advantageous.   

Provides automatic diversification

Experienced investors value diversification because they understand very well that diversifying a portfolio reduces the risks & adverse effects of single investment, says Richard Cayne Meyer International. As mutual funds hold different types of securities, they provide automatic diversification to the investor’s portfolio. In addition, it is a beneficial point that you get a much better and wider diversification (that is rarely expected when you manage at your own) because you combine your assets with other investors of mutual funds and therefore more money to spread around.  

Liquid Investments

Mutual fund shares are a form of liquid investment and therefore, can generally be sold anytime. This liquidity lets you access your money in an investment in a quick and timely manner.   That said many funds have restrictions such as monthly, quarterly or yearly only liquidity points. 

Availability of choice

Mutual funds provide you a wide variety to choose from various options. The availability of classes like money market funds, stocks or bonds provide different investment options to the investor. The investor can select the one which is most suitable for his requirement. 

Portfolio managed by experienced professionals

As per the view of Richard Cayne in Bangkok, an experienced and insightful investor always chooses his investments only after performing due research and in depth consideration to what he/she is trying to accomplish as per his/her investment goals and objectives. Any kind of investment demands continuous observance and one would be advised to seek assistance from experienced and trustworthy professionals to help manage your portfolio. These professionals continuously monitor your investments and analyze that which investments are worth buying or selling.

Low cost involved

According to Meyer International in Thailand, since mutual funds or collective investment structures can hold various assets and managed by a team of professional fund managers who will normally charge fees for such services it is important to look to minimize these fees as much as possible as play directly impact the performance of ones portfolio.  This is one reason, mutual fund advisor Richard Cayne prefers offshore registered mutual and hedge fund structures as their overall fees can be lower than their onshore counterpart funds due to lower costs of compliance and service management, not to mention they make more money as they do not have the same tax obligations.  It certainly makes sense to reason that if you paid less tax you would be able to save more money and same with fund structures.

Richard Cayne has been in offshore fund consulting and having worked in Tokyo Japan Meyer Asset Management Ltd for 15 years as investment advisor to some of the most respected securities firms in Tokyo he is also well positioned to consult with high net worth individuals and security firms around the world on offshore investments and structuring.  Richard Cayne now Managing Director of Meyer International Ltd the Bangkok Thailand servicing arm of Meyer Asset Management Ltd is also a Director of Asia Wealth Group Holdings Ltd which is listed on the PLUS market in London UK.

Basics of Mutual Funds

What Are Mutual Funds?

According to Richard Cayne at Meyer International in Bangkok Thailand, a mutual fund is a collective investment where a group of investors pool money together for buying a range of stocks, bonds or various other securities. The money is administered by a fund manager who trades the underlying securities of the fund, benefits from the monetary gains/losses and gathers interest income and dividend. The manager is not entitled to buy any stock when he feels like buying it.  A pre-decided structured mandate, which is explained in the fund prospectus, has to be followed. This is to help the investor make an informed decision.   

A mutual fund investment spreads your risk and helps you diversify your portfolio in a better way. Spreading the risk means reducing your chances of losing money. As per the type of fund, the gains obtained are optimally balanced and consistent. Almost all mutual funds follow a specific investment strategy.

Different Types of Mutual Funds

Richard Cayne Meyer International in Bangkok further sheds light on mutual funds and informs that mutual funds are available in different types including the bond funds, stock funds, money market funds, balanced funds and specialist sector funds. With the help of these mutual funds, one can choose to invest in the market as per his wish by either choosing the active portfolio management or by purchasing a market segment which has no intervention from a manager like an index fund. Because of the availability of various types of mutual funds, one can easily create a diversified portfolio and that too, without any excessive cost.     

Mutual Funds Diversification

According to mutual fund investment advisor Richard Cayne of Meyer International in Thailand, the best part of mutual funds is that one can invest an amount of money in single fund and can receive prompt access to a portfolio which is diversified and has reduced risks. Diversifying a stock portfolio, on the other hand, requires buying different individual securities and this is a more complicated and risky procedure.

Making Money from Mutual Funds

Just as any investment requires knowledge, caution, wisdom and being opportunistic at the right time, similarly, the mutual fund investments also need to make careful and intelligent decisions by the fund manager and only then, these funds prove beneficial and help the investor make money out of them, says Richard Cayne.

The mutual fund income can be obtained from dividends on stocks and interest on bonds. The fund can decide to sell those securities which have increased in value. This way the fund achieves capital growth and passes it on to its investors.   Richard Cayne of Meyer International has been involved in mutual fund distribution in Tokyo and throughout Japan for many years as he had lived in Tokyo Japan for 15 years.  Currently Richard Cayne is Managing Director of Meyer International Ltd based in Bangkok Thailand, and like Meyer Asset Management Ltd is part of Asia Wealth Group Holdings which is listed on London UK’s PLUS Stock exchange.