The Ypsilanti daily press. (Ypsilanti, Mich.) 1928-1962, 1944-09-16
Investors Advantageous
Trust Stoc ks For New

erything else in the world, have
thedr advantages and their disad-
vantages. In addition to their ad.
vantage OF Investigation already
outlined. there is the advantage OF
supervision. Every investment trust
has a manager who takes consider
able pride in securing for his trust
the highest possible rate Of interest
combined with fair safety. like
those without any preferred or bond
issues so that you will have a first
lien on the assets.
Although these managers make
mistakes at times, yet you should
be much better off In having your
holdings watched in this way. 9th
erwise, you should employ a per. !
sonal investment advisor. Stocks '
and bonds cannot be put away in
safe deposit box and forgotten any
more than can eggs. fruit, or even
clothing. Remember what the Bible
says about where moth and rust
doth corrupt and thieves break
through and steal"
The SEC. Is Helpful 9
Many bankers and corporation OF.
ficials like TO throw mud at the
Securities and Exchange Commits
sion who at times are very slow and
provoking. On the other hand, am
certain that they are honest and
that their intentions are OF the
best. Their difficulty is that they
are biting off more than they can !,
chew and are perhaps suffering
from a bad case OF Indigestion. The
cure for this Is for them 10 trust
more details to the judgment OF
those needing their approyals.
The Securities and Exchange
Commission Is certainly doing much
for investors in connection with in
vestment trusts. Some years ago
some OF the investment trusts did
very wicked things. Insiders load.
ed them up with securities which
they knew were no good, and pur'
chased from them for themselves
securities which they felt were val
liable and would go up in price. or
course, this was very wrong. but II =.
has all been stopped by the Securi. y
ties and Exchange Commission. In
vestment trusts are now watched
almost as carefully as are State
Banks.
Loading Charges
In order 10 get this diversified
ton and management, investors
must pay loading charge" The
sponsors OF an investment trust
or the manufacturer" so-called -
usually take commission OF Il OF
| per cent plus the cost OF super.
vision. They. in turn. usually allow
2 per cent to the wholesalers plus
5 per cent 10 the retailers from
whom you buy the investment trust
stock. This means that there usual. d.
ly Is a loading charge OF about "a
per cent, equivalent to about s75
per 1000, which is included in the
price OF the stock.
II you will be content 10 buy the
stock and hold II, this loading
charge is not unreasona Bile; but II
you-say once year-switch into
some other investment trust then
you will be paying this loading
charge unConSclOusiy every year
and It finally could eat UP all your
investment.
Avoid Switches
As soon as person buys an In
yestment trust stock and II goes un
in price. or some other stock goes
down, the salesman will come
around and want you 10 switch In
order for him to get another com.
mission. There are a hundred diff
ferent good investment trusts and
these statesmen watch them all with
the eye OF a hawk. II they find one
that yields a trifle more or shows
a little more rapid appreciation.
they may advise you TO sell what :
you have and switch into this other
investment trust stock. They fall 10
tell you that the slight increase In
yield or appreciation may be but
temporary. Also that what they
switch you into has probably gons
up as much or more than what
they want you TO sell.