Answers


29 Jul 2011, 04:22
Why/when would an ETF not match with the underline index it is tracking? I am looking at the Dow Jones sustainability Index as one of my investing fund. This fund is not on your site but a little concern here.

29 Jul 2011, 10:07
Dr. David Costa's reply:
Hello,
an ETF always tracks its underlying index. At times it might have a tracking error but it does always track the index it is linked too. More information about the ETF in question are available at

http://uk.ishares.com/en/rc/products/IGSG

Regards
Dr David Costa

29 Mar 2011, 10:40
Can you recommend a broker who deals in ETF's and Forex on the same platform to alleviate the problem of having trading capital in more than one accouint?

29 Jul 2011, 10:05
Dr. David Costa's reply:
Hello!
It is difficult to recommend brokers but pretty much every brokerage account in the US like TD Ameritrade https://wwwna.tdameritrade.com/ or
https://www.zecco.com/ would allow you to trade both ETFs and Forex.
Regards
Dr. David Costa

28 Mar 2011, 16:21
I would like someone to very simply state what is an ETF and how do they really work?
There has been a lot of talk about them lately but nobody has been able to tell me exactly what risks they have and how they operate.
Is this something new that the people who learn about them aren't clear aand aren't able to explain as yet or are they trying to give it a secretive aurea around it?

29 Jul 2011, 10:03
Dr. David Costa's reply:
Dear Sydnie,
thank you for your question. I am sure that you can find the basic definition online but here is a simple guide
http://www.guggenheimfunds.com/Libraries/Literature_en/Have_You_Explored_ETFs.pdf

Essentially ETFs are funds tracking an index that can be traded throughout the day as stocks. ETFs offer high transparency and lower fees than traditional mutual funds. This is due to the fact that ETFs track an index passively (without the involvement of an active manager) and obviously this reduces costs drastically.
Best Regards
David

26 Apr 2010, 11:15
what is mutual fund what is advantage of to opening a mutual fund account

26 Apr 2010, 11:44
Dr. David Costa's reply:
Hello and thanks for your questions. There are plenty of online resources explaining what is a mutual fund so I would not get deeper into this point. Among the benefits of opening a mutual fund account is the opportunity to participate in a pool of investments managed by professionals and hence having a diversified and (hopefully) well managed portfolio even with a small amount of money. Additionally, by making regular investments in a mutual fund (e.g. monthly) you benefit from a cost per unit averaging set to provide you with long term benefits vs. focusing on daily trading and more risky strategies.

I see that you are from India so perhaps you should pay a visit to
http://www.morningstar.co.in/ for several articles and resources related to mutual funds.

26 Apr 2010, 11:02
what is the future of JM BASIC FUND????

26 Apr 2010, 11:38
Dr. David Costa's reply:
Hello and thank you for your question. I don't have substantial experience with Indian fund - nor I have the power to forecast the future - but I managed to find some information for you.

According to Morningstar
http://www.morningstar.co.in/in/snapshot/snapshot.aspx?tab=0&id=F0GBR06RTL&lang=en-IN

both funds in that family did underperform other funds in the same category. You might want to check on Morningstar if there are other funds in the same category that might fit well in your portfolio.

Secondly you should check the monthly reports of the fund and decide if their holdings and strategy is in line with yours.

Last but not least you should really do some comparison work with other funds and providers and only then you can draw some conclusions about the past - that is not a good indicator about the future but it is the only data we have.

Another interesting point: as you can see the fund (like the market) had a very good 2009 but is experiencing some correction in 2010. If you need more information feel free to post a more detailed question.
Regards
David