Similar to most people in North America the writer was in a grocery store to buy food. There is and was a vast selection of food offered, the grocery store has to appeal to a large amount of people. On my list was things I need, given the heat ice cream was there but is it a need or a want?

In the mutual fund world, where many people start investing there is a vast number of funds offered. The writer has a bias to keep it simple for the majority of people – two types of funds are needed. A dividend fund in whatever country you live in and a monthly income fund.

The bias is understanding how the dividend fund operates, the owner of the fund will look at their holdings and see how the managers are doing does the company pay their dividend or not? yes – can own. no – sell the holding and buy a company that does. If the fund company is not doing its job get out of there fast! In keeping the understanding simple, means the investment decisions from the universe of companies that pay dividends and to select the ones that fit into the portfolio, noting the majority of stocks are bought for growth or increase in stock price and do not pay dividends. The fees to select and maitain such a fund should be less than an equity fund. Less fees saves you (the consumer) money and you will like it, the company may not be it but it is your money.

Similar to the grocery store, as the reader examines the funds ask what do you need – in the writers opinion the only thing most people need is a dividend fund and monthly income fund. The others can be bought after a person has acculumated enough to generate a monthly amount you could live on. Similar to the grocery store, there is a vast amount of food in it, do you buy everything in it? or tend to staples first and once in a while try other foods? Why would investing be different?

There are always more questions than answers, till next time – to raising questions