Getting The Benefits Of Diversified Portfolio Beyond Mutual Funds
In most of the cases when it comes to elderly people or those who are not
interested in day trading and prefer to make a stable and solid investment
through share accusation mutual funds is a great way to invest. But even
those who are interested in regular trading mutual funds present a healthy
short term investment.
There is yet another way to make a sound investment and that is through
Merrill Lynch HOLDRs. These are a new breed of investment bonds designed
on the pattern of mutual funds but a bit more focused on industry niche.
These holding certificates let you have a certificate of shares of
different companies of the same group.
Earlier when an investor wanted to invest in a certain industry or sector
he would be forced to buy shares of different companies, paying brokerage
commission again and again on each trade deal that you carryout. These
transaction commissions generally reduce the investment returns over a
longer period of time. HOLDR now saves that bundle of commissions as your
broker can only claim one transaction commission on the complete set of
stocks for different companies.
Presently they are seventeen types of HOLDRs in which you can invest. They
are:
* Biotech HOLDRS
* Broadband HOLDRS
* B2B Internet HOLDRS
* Europe 2001 HOLDRS
* Internet HOLDRS
* Internet Architecture HOLDRS
* Internet Infrastructure HOLDRS
* Market 2000+ HOLDRS
* Oil Services HOLDRS
* Pharmaceutical HOLDRS
* Regional Bank HOLDRS
* Retail HOLDRS
* Semiconductor HOLDRS
* Software HOLDRS
* Telecom HOLDRS
* Utilities HOLDRS
* Wireless HOLDRS
Each type will hold a number of shares of different companies from that
type of industry which is fixed at its value and offers all the facilities
that a share holder gets.
