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Mutual Funds
For Dummies
By Eric Tyson
Paperback, 2nd ed., 406pp.
ISBN: 0764551124
Publisher: IDG Books Worldwide
Pub. Date: December 1998
I wouldn't call myself a dummy. But, between me and
my husband, I was the ignorant one when it came to mutual
funds. He handles our investments, and he always keeps
me informed, but I never really cared to know more than
I had to. When I came across this book I felt compelled
to read it, and I'm glad I did. Eric Tyson really knows
his stuff, but he presents the information in a humorous
and down-to-earth manner. He does a good job of relating
the complicated world of finance to concepts a layman
can understand.
The best thing about Mutual Funds For Dummies
is the approach the author takes. Tyson gives you his
opinions and explains many of the reasons that stock
brokers and financial planners may be inclined to steer
you wrong. I felt that this book was very empowering
because it gives solid arguments against some of the
things salesman will say to you to ensure your business
with them.
| "Brokers work on commission, so
they can and will sell you only load funds. They
may even try to hoodwink you into believing that
they can do financial planning for you. Don't
believe it." (p. 114)
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The first section of Mutual Funds For Dummies discusses
the how's and why's of mutual funds. Tyson explains investments
from the ground up, and then builds on that information.
So, by the end of the book you could talk with the financial
"geeks" and nobody would be the wiser. Tyson also gives
good information about how to pick great mutual funds.
He explains all of the things you need to look for—operating
expenses, comparing performance numbers, fund managers
and warning signs for loser funds. Then he goes through
a prospectus page by page and explains what's important
and then points out the stuff you don't need to worry
about. This will be a great reference for years to come
at our house.
The second section deals with building a portfolio
of mutual funds. Asset allocation, taxes and investment
strategies are discussed. Then Tyson explains each different
type of mutual fund—money market, bond funds, and
stock funds. My favorite part about this section were
"Eric's Picks". He gives you lists of the best funds
in each category and includes the 1-800 numbers so you
can call the company today! His picks are a varied group,
so that you can find one that's for your situation.
Just about every list has at least one index fund that
he recommends.
| "The notion that most average
people and non-investment professionals can, with
minimal effort, beat the best full-time, experienced
money managers is, how should I say, ludicrous
and absurd." (p. 45)
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Another plus in this book is the way he used actual stories
about his clients and friends. The stories were used to
explain different investment strategies and they made
the book a lot more enjoyable.
I recommend this book as a must read for anyone interested
in mutual funds. It gives tons of great information
and will be a great reference on your shelf for years
to come. ~
Emily Moore, for Index Funds Online
Author
Eric Tyson, MBA, is a best-selling author and
syndicated columnist. Through his counseling, writing,
and teaching, he teaches people to manage their personal
finances better and successfully direct their own investments.
He has been involved in the investing markets in many
capacities for the past two decades, including work
as a management consultant to Fortune 500 financial
service firms. He earned his MBA at the Stanford Graduate
School of Business. He has also been a featured speaker
at a White House conference on retirement planning.
From Mutual Funds For Dummies ®, 2nd
Edition.
Excerpts
Excerpts from the book:
Beware the
Claims of the Stock Picking Gurus
©1999 IndexFunds.com
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