[hello123]

After I thought about it for a while, I concluded it’s because Chinese aren’t use to investing. Chinese can be professional in many field, but they are naïve when it come to investing their money, due to the fact investing was never part of their life when they grown up in China.

It hurts me to see many of our fellow Chinese get ripped off by investment brokers, insurance agents and RESP agents. If things don’t start to change, how will we ever see Chinese community to be strong and prosper?

INVESTMENT IS MORE IMPORTANT THAN YOUR JOB! Spend some time to understand it.

One type of investment is Bond. Bond is secure, easy to manage but Bond gives low return. I wouldn’t suggest anybody to invest in Bond because after you pay capital gain Tax you will end up with lower return than inflation.

Now let’s look at mutual fund, Mutual Funds offer you the benefit of diversity, and don’t require time to manage. The first problem is management cost. The charge on Mutual fund can range from 2.5-10% per year. In order for sales agent to sell their product, there are funds give very high hidden front end commissions. The second problem with mutual fund is performance, 95% of the mutual funds actually under perform index.
So basically you are buying a product that under performs index and you get charged heavily on it, and if you paid hidden commission to the sales agents you are been seriously ripped off.

The difference over the past 5 years, the index been return 20% a year. If Mutual funds you have give you a return of 15% a year, for $100,000 invested, the difference will be 248832-201135=47696, so you made $101,135 and the fund manager made $47,696 sounds fair? Let’s look farther, in 10 years the different become 619,173-404,555= 214,617. Factor in the adjustment for inflation of 4% per year, your mutual fund return will become even smaller. As you can see your fund managers are making lot money off your money. That’s why recently the top paid CEOs are from fund management companies.

So what do you invest? My suggestion is Index, Index gives return better than 95% of the mutual fund can offer you, low cost, you don’t have to manage it, low risk. For NASDAQ it’s QQQQ and for TSX check out XIU.

But your financial advisor isn’t going to suggest it, due to the fact now nobody can make money out of you.

[挺傻]

支持一下。赞同很多观点。

不过MUTUAL FUND也有它的好处就是基本上你啥也不操心买卖还没手续费。如果你能够挑选特定SECTOR的FUNDS，很多还是可以BEAT大盘的。不过需要经常的REBALANCE或者自己做重新的组合。但是很多投资者个人是没有那么多经验时间也不想花精力去研究。

QQQQ是个好推荐。如果不想对个股做详细分析的，基本上每年10月底到4月份弄几个QQQQ，全年70％的收成就有了。

[nightingale]

where can I find information about Index(QQQQ)? how to operate it?

[挺傻]

作者: nightingale

where can I find information about Index(QQQQ)? how to operate it?

直接到YAHOO FINANCE上面输入QUOTE:QQQQ就可以看到了。
QQQQ就等于一个股票代码一样，跟买卖股票一样的操作。这个的好处就是你不需要研究个股的走势，就看大势就可以了。而且盘子足够大，不会有流通问题的。