Comments on: Dividend Mutual Funds Offer Passive Income And Inflation Protection http://amateurassetallocator.com/2010/04/28/dividend-mutual-funds-offer-passive-income-and-inflation-protection/ Amateur Asset Allocator Fri, 10 Feb 2012 18:16:33 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Munir http://amateurassetallocator.com/2010/04/28/dividend-mutual-funds-offer-passive-income-and-inflation-protection/comment-page-1/#comment-13642 Munir Mon, 31 Jan 2011 21:58:31 +0000 http://amateurassetallocator.com/?p=4674#comment-13642 Volatility of a mutual fund is very important, because most people put a large portion of their savings in to mutual funds because they cannot invest this money on their own. This can be due to full time employment & lack of time, lack of knowledge or other. Here's a good article on how to check for a mutual fund's portfolio turnover http://www.bestperforming-mutual-funds.com/mutual-fund-portfolio-turnover.html An increased turnover means the fund is taking aggressive risk & trading securities more often to make the capital gains & to be able to pay out the dividends. For instance, a fund with a 20% turnover rate will deplete itself with 100% new stocks in 5 years whereas a fund with a 100% turnover rate will replace all stocks within 1 year. Volatility of a mutual fund is very important, because most people put a large portion of their savings in to mutual funds because they cannot invest this money on their own. This can be due to full time employment & lack of time, lack of knowledge or other. Here’s a good article on how to check for a mutual fund’s portfolio turnover http://www.bestperforming-mutual-funds.com/mutual-fund-portfolio-turnover.html

An increased turnover means the fund is taking aggressive risk & trading securities more often to make the capital gains & to be able to pay out the dividends. For instance, a fund with a 20% turnover rate will deplete itself with 100% new stocks in 5 years whereas a fund with a 100% turnover rate will replace all stocks within 1 year.

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