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The Morningstar Guide to Mutual Funds: 5-Star Strategies for Success

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Title: The Morningstar Guide to Mutual Funds: 5-Star Strategies for Success
by Christine Benz, Peter Di Teresa, Russel Kinnel
ISBN: 0-471-47141-0
Publisher: John Wiley & Sons
Pub. Date: 12 December, 2003
Format: Paperback
Volumes: 1
List Price(USD): $16.95
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Average Customer Rating: 3.91 (11 reviews)

Customer Reviews

Rating: 5
Summary: Informative Book for Everyone
Comment: "Morningstar's Guide to Mutual Funds" is the book for any investor, large or small. When my financial adviser would start discussing mutual funds, the NYSE, etc., my eyes would glaze over and my mind would wander. I never could understand the mumbo-jumbo he was throwing at me. Plus he never seemed able to explain why my portfolio kept sliding downward. So, I purchased this book in hopes of understanding more about investing and what I needed to do. This is clearly the book for me, and I am so thankful for such an edifying book about investing that makes it seem so simple.

Rating: 5
Summary: Good Comprehensive Guide
Comment: Has your portfolio taken a butt-kicking lately?

Obviously, it's a fact that millions of Americans currently own and will continue to purchase mutual funds. Today many are realizing they didn't monitor, change, or properly allocate some of their funds. Obviously, many will depend on them in the future. 401Ks
are also mutual funds, as well as the traditional and Roth IRA, the 403b among others. Since so many are participating and people will continue to pour billions of dollars into them, the beginning individual mutual fund holder should have this book.

It will primarily benefit those who are new to mutual funds or those who want to increase their general knowledge. Simple, precise explanations. Explanations on proper and true diversification, rates and risk of return, asset allocation, and appropriate risk based upon one's attitude, age, and stomach. It tells one how to look at how a particular fund operates and what it's invested in. Terms such as diversification, dollar-cost averaging, and the fact that past performance is no guarantee of future results are usually known to those who've followed mutual funds already. It is good to understand and calculate the true "cost" of a fund. Declining backend loaded funds are o.k. in solid performing funds that an individual will hold for a period of 5 yeas or more. But does one know if they are gong to be in a fund for five years? When a new fun manager takes over the operations and asset allocation of a fund, it is important to note how and where there may be changes. Know the difference between a micro, small, medium, and large cap index fund. How is a cap defined? Know the difference between a balance, value, international, emerging market, index, and global fund. Global fund? That means most of the investment allocation is overseas right? Nope. Often, most of the fund's holdings are in domestic (American) companies which means the global fund may have the same holdings as your U.S. blue chip, or more domestically oriented funds. Owning more mutual funds, and even funds in different families, means the more diversification correct? No. One can achieve the same diversification with 7 funds as 17. Even moreso. In addition to this book check out Bob Brinker on the radio.

Rating: 4
Summary: Good mutual fund book for beginners
Comment: That is THE book I am looking for!!! It is very easy to read and follow for beginners like me. It provides an overall review about the whole industry, major players, popular funds, and basic strategies. It emphasizes a lot on the importance of diversifying the portofolio and how to do that. The book serves well to prevent beginners from making BIG investment mistakes.
Of course, it is a MORNINGSTAR book. It is all about Morningstar methods and tools. And I discovered that most of advanced tools recommended by authors are NOT free.

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