Simple Tips to Increase Your Bottom Line

Physician's Money DigestMay 2007
Volume 14
Issue 5

Motley Fool

To boost your bottom line, it is importantto consider funds with expense ratios in thevicinity of 1% or less, reports a recent articlein by SharonZimmerman. Keeping thefund's costs, such as brokeragecommissions,down is one way to identify a market beater.Funds such as the Vanguard 500 index,which track the S&P 500 index, have lowcosts of 0.18%. Realized capital gains arealso kept to a minimum thus saving youtax dollars.

Another method, according to Zimmerman,is to select funds in which themanagers themselves invest in the fundsthey manage. This allows the managers tohave their interests match your interests.Finally, Zimmerman looks for fund managerswho buy quality companies during a sell-offperiod. This happens when price-to-earningsratios of 10-year market leaders trade belowthat of the S&P 500 and their market competitors.Funds such as value-slantedChampions Fund have earned greater than460% over a 15-year period ending February2007.

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