There is no denying that China is “hot.” While buying individual stocks is one way to gain exposure to this rapidly developing nation, mutual funds may provide a more diversified avenue. From owning individual stocks like the ones covered in The Value Line Investment Survey to using an Asian specialist like Matthews Funds, there are a plethora of options to gain exposure to China.
Interest rates are at historical lows. Although one can persuasively argue that rates can still go lower in the near-term, it is unlikely that they will remain this low forever. The current environment is a dilemma for income-oriented investors. Though not a solution, floating rate funds can help provide some consistency.
Mutual fund investors may have more in common than they think. While the objectives of various funds are often very different, the general goal of most mutual fund managers is the same—capital appreciation. In fact, many of the largest U.S. mutual funds hold considerable positions in the same stocks, which means that mutual fund investors could have a stake in some well-known companies without even realizing it.
As pass-through entities, mutual funds must distribute dividends and capital gains to shareholders. These distributions often occur at the end of the calendar year and can, at times, be quite large. Fund shareholders need to be cognizant of these distributions lest they find themselves in a surprising situation.