How do you avoid economic instability or collapse? What are the best ways to defend yourself against such potential dangers? Well, one was is to consider safely investing your money into an FSAGX, or Fidelity Select Gold Portfolio. This is a mutual fund, who main interests lie in seeking capital gain through both investing directly in gold and gold-related activities. This can include purchasing physical bullion bars or coins, investing in "paper gold" such as stocks and bonds, or investing in companies whose primary business has to do with the exploration, mining, processing and dealing of gold. FSAGX deals primarily with gold, but also sometimes with other precious metals such as silver, platinum, diamonds, and other precious minerals.
When a fund is diversified, it means that it adheres to three principles, which are: (1) - 75% or more of its assets are invested in securities, (2) - no more than 5% of its assets are invested in any one security, and (3) - it contains no more than 10% of the outstanding shares for any one security. FSAGX is a non-diversified fund, so it doesn't necessarily have to apply to said rules. Typically, up to 25% of its assets are invested in gold and other precious metals through a wholly-owned subsidiary, and at least 80% is invested in the securities of companies who are primarily engaged in gold-related activities.
When it comes to any mutual funds, the risk factors remain virtually the same across the board. The value of almost any fund's domestic and foreign investments will vary from day to day, as a natural response to a multitude of factors. Due to changes in the economy, political policies, governing bodies and national and international regulations, stock values fluctuate greatly over time. Therefore, depending on the momentary state of the economy and the oscillations that have happened since purchase, you may encounter either a gain or loss when selling, and it could be of a minimal or dramatic nature.
Be aware that investments in foreign securities are more subject to fluctuations and risks that investing in just the United States. This is due to increased political and economic risks because of currency differentiations.
Since the FSAGX is a non-diversified fund, it may therefore invest a greater portion of its assets into securities of individual issuers than a diversified fund would. This means that a single investment can either cause or be subjected to greater fluctuations in share price than would occur in a more standard, diversified fund. A funds performance can also depend heavily on the industry and therefore become more volatile than the performance of less concentrated funds, or the market as a whole.
When a fund is diversified, it means that it adheres to three principles, which are: (1) - 75% or more of its assets are invested in securities, (2) - no more than 5% of its assets are invested in any one security, and (3) - it contains no more than 10% of the outstanding shares for any one security. FSAGX is a non-diversified fund, so it doesn't necessarily have to apply to said rules. Typically, up to 25% of its assets are invested in gold and other precious metals through a wholly-owned subsidiary, and at least 80% is invested in the securities of companies who are primarily engaged in gold-related activities.
When it comes to any mutual funds, the risk factors remain virtually the same across the board. The value of almost any fund's domestic and foreign investments will vary from day to day, as a natural response to a multitude of factors. Due to changes in the economy, political policies, governing bodies and national and international regulations, stock values fluctuate greatly over time. Therefore, depending on the momentary state of the economy and the oscillations that have happened since purchase, you may encounter either a gain or loss when selling, and it could be of a minimal or dramatic nature.
Be aware that investments in foreign securities are more subject to fluctuations and risks that investing in just the United States. This is due to increased political and economic risks because of currency differentiations.
Since the FSAGX is a non-diversified fund, it may therefore invest a greater portion of its assets into securities of individual issuers than a diversified fund would. This means that a single investment can either cause or be subjected to greater fluctuations in share price than would occur in a more standard, diversified fund. A funds performance can also depend heavily on the industry and therefore become more volatile than the performance of less concentrated funds, or the market as a whole.
About the Author:
For more information on investing in FSAGX and other precious metals options, visit our site.
Posts
No comments:
Post a Comment