Richard Cayne Meyer Tips on Mutual Fund Selection
Mutual funds have become quite diverse in the investment world, especially with medium-scale investors, who have income to spare and are willing to accept certain amounts of risk with their money. However, with a plethora of mutual fund options in the market today, to pick the right one for yourself might seem like a daunting task. The following tips from Richard Cayne at Meyer Asset Management Ltd Japan, an expert financial consultant with over 19 years of experience in the Asian market, can help simplify the decision-making process.
The first and foremost step to consider before beginning your selection of mutual funds is to assess your financial goals and risk tolerance. Whether you expect capital gains in the long-term to perhaps pay for your retirement or current income to perhaps fund a college education for your kids, it will have a great impact on the choices you make. Richard Cayne at Meyer Asset Management Ltd Japan advises to take liquidity into consideration as well as you narrow down your choices. Richard Cayne at Meyer Asset Management Ltd Japan further adds that identifying your risk appetite is a key aspect to finally settling on the kind of mutual fund that works for you.
As discussed, the style and type of fund weighs heavily on your risk appetite and financial goals. Richard Cayne at Meyer Asset Management Ltd Japan explains that investors looking at long-term investments and ready to take on a fair amount of risk should opt for long-term appreciation funds that are mostly made up of common stocks. On the other hand, investors looking at current income should opt for income producing investments. However, investors looking at long-term investments, but unwilling to take risks should go for balanced funds with a mix of stocks, bonds and real estate.
Richard Cayne at Meyer Asset Management Ltd Japan advises that looking into the past performance of a fund is key when contemplating an investment. The questions to ask would be whether the fund manager has been delivering returns in alignment with the general market, was the fund more volatile than the major indexes and whether there was an unusually high turnover, which could result in elevated tax liabilities for you. The answers to these questions will give you insight into the performance of the fund manager under various conditions and allow you to assess its future prospects. Richard Cayne at Meyer Asset Management Ltd Japan says looking into the charges and various fees associated with a fund will also help in making an informed choice.