Customer Reviews

Mutual Funds for Dummies

5 star:		(42)
4 star:		(13)
3 star:		(4)
2 star:		(1)
1 star:		(2)

 

 

"Mutual funds for dummies" is the third book from the "Dummies" series I got my hands on. Reading the first two was a waste of time, and frankly speaking I did not expect much from this one either. However, this book was a pleasant surprise, which changed my opinion on the "Dummies" books. The first half of the book is a comprehensive study of the basics of mutual funds and of the criteria for evaluating their performance and selecting the best funds. It is so well written that I asked myself many times while reading what this book had to do with the "Dummies" series. I got the answer to this question at the end of the book, where the author offers detailed instructions which funds can be recommended to start with, how to obtain and fill out an application form, how to understand statements from the fund, and finally how to calculate your taxes at the end of the year. This book is indeed a benchmark which other books from the "Dummies" series should be compared with: a combination of sufficiently detailed information for those who want to know what they are doing, with step-by-step instructions and detailed advice for those who want to get started right away and do not have the time or the background to study the possible options and make their own independent picks of the funds. Another impressive aspect of this book is that the author makes every attempt to convince the readers not only look into the performance of individual investment vehicles, but also to take into account their individual financial situation, such as long and short term financial goals, tax brackets, availability of retirement accounts, etc. Most other books leave this important aspect completely out of the scope. Finally, Eric Tyson offers a very realistic approach: he makes an excellent job convincing the readers that one does not have to have an MBA to be a successful investor, he explains why mutual funds is possibly the best option for the most of us, he is very frank with the readers as what returns one can (and should) expect from an investment, and finally he suggests the ways how these returns can be reached by offering a choice of 30-40 decent funds. It is hard to get disappointed with this book!

After having read many mutual fund books over the last 7 years, this one cuts through the complexity to give you down to earth suggestions you can use. He names funds to buy and some not to buy. He clearly explains the impact of low operating expenses on total return. He is not afraid to criticize financial newsletters and the Morningstar rating system (it has not done very well in predicting future performance). Best mutual fund book I have read.

Eric Tyson has put together a very good book for new Mutual Fund Investors. This book will act as a "coach" to get new investors going and growing a portfolio of mutuals. For even more powerful strategies, I strongly recommend "Mutual Fund Strategies" by J.W. Dicks and "More Wealth without Risk" by Charles Givens. These books will "turbo charge" your portfolio.

Bought this book as a gift for my son ---gives a good understanding to the novice investor on what mutual funds are and how they work. Very well written. I also highly recommend More Wealth without Risk and Financial Self Defense by Charles Givens. The chapters on Powerful Investing in MoreWealth without Risk in paticular offer more complex strategies than what Mr Tyson offers here. I highly recommend Mr Tyson's book toanyone interested in getting started in mutual fund investing...hen pick up Givens books for the real meat.

This book is an excellent guide to the world of mutual funds. Eric Tyson does a service to beginning investors by steering them towards the modest goal of getting the same return as the market by investing in low-fee, low turnover mutual funds (preferably index funds).

Tyson covers nearly everything in this book, from how to build a portfolio, to what returns you can reasonably expect, to where to buy the funds. He covers stock funds, bond funds, and money market funds, and shows how you can evaluate them. He does all of this in easy-to-read prose.

I have one small complaint about the book. If Tyson is not paid by Vanguard, he should be. I can understand that given its dedication to low cost and its unique corporate structure among brokerages, Vanguard might be the best place around to buy mutual funds, but Tyson should have made a point to back off just a bit on highlighting the company so egregiously to avoid the appearance of being the company's shill.

But despite this small lapse, I believe Tyson has the best interests of people who want to make a little money for retirement, their children's education, or some other modest goal, but aren't comfortable speculating. He encourages that healthy skepticism towards their ability to make a quick buck and instead teaches them to invest in a way they can have reasonable confidence -- instead of an irrational exuberance -- that they will get the expected return on their money.

How many people out there have no clue about mutual funds? I belonged to that mass until I read this book! My situation was what to do with the money slowing accumulating in my employee retirement fund; and if your employer is like mine, it's put by default in some lame savings account. This book explains in a clear simple manner what the big deal is about mutual funds. As such it's directed for beginning investors, probably in their 20's and 30's. It's a long book, but easily digested in just a few nights. This will help you put together a reasonable portfolio and make you the envy of your co-workers!

Many people who are going into mutual funds and investing do so without any knowledge of basic things.

The good points of this book are too many to go into, but I'll say that several things were helpful:

1. Discussion of Indices and the mention that they tend to cary lower expense ratios, etc.

2. Mention of how much you "should" be paying in terms of mutual fund expenses.

3. Demonstration of reasonable rates of returns and fraudulent rates of return as well.

For people who think that it is "worth their time" to pay a consultant or an advisor, this is the book that will save them a lot of money.

As a true "dummy" trying to understand the world of mutual funds, Mr. Eric Tyson truly does a fine job in highlighting many of the promises and pitfalls of this investment vehicle (among others--IRAs, money markets, individual stocks, etc). Easy to read, matter of fact, and humorous discourse throughout, you can't go wrong w/ this edition.
I normally don't assign 5 stars, but I can't find anything not worth this book's money. Again, I'm a layman in the world of investing which is primarily why I found this to be an immense amount of help.

I knew nothing about Mutual Funds before reading this book, but having now done so I feel a lot more confident in making investing decisions. This book has a lot of great information and tips and is quite an easy read, but because there is so much information you have to take it slow at times and take notes as you read. Definitely not for dummies!

The one thing I would bring to your attention is that the book gives many recommendations on funds and fund companies. Since the current 3rd edition of this book is dated 2001, some of this information may have changed, especially when you consider recent fund scandals. If you can, wait for the 4th edition which is due out in September 2004. I don't think you will miss much by holding off on your investments until then. For now, just stick any spare cash in a good money market account.

This book, at about 400 pages, is detailed and pleasant to read. Covers all the basics and provides short lists of best funds in many categories. Also includes many sample portfolios for investors in different situations.

I found other fund books to be terse, and to have an agenda opposed to the readers. The worst were those written by brokers and newsletter writers, neither of whom will like this excellent book.

The author clearly shows the advantage of no-load funds which can be bought without commission and why newsletter writers are filled with hot air.

The only other fund book I've read which comes close is Bogle's but his is far too technical and not specific enough in its advice.