Mutual Funds Articles Essay Example | Topics and Well Written Essays - 1500 words

Mutual Funds Articles - Essay Example In many cases, it is seen there has been a change in investing styles. Suppose, suddenly a fund manager leaves a company and joins another company and two new fund managers takes his place. It is quite obvious they would change some things or make some moves to make the working pattern according to their style. It can be quite possible that some of their initial moves may backfire. Many companies keep bench strength by keeping upcoming managers as trainees so that they can tackle emergency situations. At the Pioneer (TAHYX) High Yield fund, the managers are hopeful. Outflows have slowed, and when no manager expects a quick turnaround to the credit crisis, they also note that junk bond investors are being paid for taking on risk. Fund manager transitions can often be a little shaky or rough, especially if the previous manager had achieved great results. The main lesson for investors must be that they should not flee when a star manager moves on but they must make a more informed decision by being aware of challenges a new manager might face. The firms can bench strength of upcoming managers to avoid the transition phase problem, or create terms of managers. Even a planned transition can go wrong but that must not mean that the companies would stop planning about the transition phase well in advance. The article â€Å"Equities In Disguise?† by Greg Miller says that the main component of convertible security is coverable bonds. Other components may include preferred stocks and other hybrid convertible securities. The word â€Å"bond† mainly refers to safety, security, stability, and income. Most of today`s bonds are not true bond funds neither are they return focused. The term â€Å"absolute return† refers to positive returns through both bull and bear markets. Similarly, many convertible funds are not bond funds either. There are many examples that can be cited to prove the validity of this statement. For example, one can take a look at the top