Three Ways Your Typical Mutual Fund Is A Lot Like A Really Good Marketing Plan!

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Three Ways Your Typical Mutual Fund Is A Lot Like A Really Good Marketing Plan!

So do you currently have any type mutual funds working extremely hard for you? You know, without trying to get too technical here, (that’s short code for boring.)

Mathematically speaking they (say), that’s the unspecified group we often refer to, when you’re not totally sure who the exact unnamed specific party is. (You simply refer to this entire unnamed mystery group as they!)

Anyway, it’s said mutual fund investing on the whole (unless of course) you’ve got Warren Buffet like, kind of individual stock picking skills, is actually up to eight times more safer, than trying to pick individual stocks.

(Of course , let’s be clear here. Investing in stocks (blue chip ) or otherwise still carries  a certain element of risk, because it’s not a guaranteed return on investment! Correct?)

But the main reason being a good-well managed- mutual fund portfolio reduces your overall risk, is because your stock portfolio is diversified into several different segments of the economy. At any given time.

And  by investing in several different sectors throughout the entire economy,no one bad or poorly performing sector can sink your entire financial ship!

For ex; typically well performing utility stocks, the transportation sector, bio tech firms, (think big, cash rich Pharmaceuticals companies here), and really large (and therefore) presumably safe, conservative blue chip companies, like Microsoft, Walmart, McDonald’s or Target etc.

These are the  different types of individual stocks and segments of the economy, that a well balanced mutual & bond fund will primarily be invested in.

But it also invests in a few slightly riskier start ups, that may or may not actually pan out!

And if they don’t, the fact that part of or most of the remaining part of your stock portfolio is invested in far less riskier stocks,  (on paper anyway) this  average, is supposedly what reduces your overall risk.

At least that’s the theory these well educated hot shots tell you/us during their eye glazing presentations!

Anyway, since you could have just as easily Google d (or gone to youtube) and found  all of this type of  semi boring dribble or discovered most, if not all of this trivia over lunch with a really close friend or relative and or associate etc.

You’re probably wondering, what if anything, does a so called well balanced mutual fund, have to do with your current or future marketing plan? Fair enough.

So What Are These Three Ways That Your Typical Mutual Fund Is Like A Really Good Marketing Plan?

Before diving head long into that answer, just a couple of more pieces of mind numbing trivia, that anybody who invest in mutual funds, really actually cares about!

Another really important (and often) overlooked factor, that makes mutual fund investing so appealing, especially for the novice investors.That simply don’t have the time or interest, in studying individual stock performances and charts etc.

The typical mutual fund portfolio is actually made up of 100 ( or so) different individual stocks, but it’s spread over five or six different sectors of the economy, as previously disclosed .

The point being, imagine for just a second, your typical 100 individual stock mutual fund portfolio, is actually a giant omelette! Bare with me! And that omelette is made up of 100 separate eggs.

If on your way to the hot skillet, you accidentally dropped one egg (oops!) And you went ahead and mixed the other 99 eggs together and made the omelette. Do you really think anybody will be able to taste the difference, and know one or two eggs were missing? No way, right?

That’s why mutual funds diversify their portfolios, (and you should too.) So that no one or two individual stocks or poorly performing sectors of the overall economy, will sabotage your entire portfolio.(Makes sense right?)

Mutual Funds And Marketing Plans And Their Similarities!

Entrepreneur, did you know, that  one of the very first legally organized mutual funds, originally came to American shores in the 1890’s? Yep. And one of the first closed ended mutual funds started here about 1893 or thereabouts.

By way of the “Boston Personal Trust” fund. But then later on ( in 1924) also in Boston, the modern day (what they now refer to) as an open ended capitalization type of mutual fund investment vehicle was formerly introduced. And it was affectionately called the “Massachusetts Investors Trust” mutual  fund.

For now, let’s totally skip what’s meant by the terms, “open or closed end” funds and “capitalization”, just Google them if you really gotta know!

Okay, it’s far more trivia than you really wanted to know! Agreed! Now then…. how or what does any of that dribble have to do with your current or future marketing plan?

Actually, there are actually three incredible similarities, believe it or not? So let’s take a look.First of all….

Who Knew Your Current Or Future Marketing Plans Had So Much In Common With Profitable Mutual Fund Investing!

1.) Marketing plan similarity # one: If your primary source of highly targeted traffic only comes by way of free organic sources, such as the major search engines, like Google.

NASA, we have problem! You see, just like that one individual stock,  if you choose wrong and it blows out! You lose all or most of your investment capital. Just depending on how much you invested in that one particular stock.Right?

However, when you develop several reliable highly targeted traffic generating sources, that my friend is the equivalent to an extremely savvy stock investor reducing their risk, by diversifying their overall portfolio, by investing in a reputable mutual fund of some kind.

2.) Marketing plan similarity #two: Next, let’s say that your mutual fund portfolio is made up of the typical 100 individual stocks, spread out over five different (diverse) sectors of the economy. Which means each individual sector represents 20% of your entire portfolio. Correct?

Let’s say one sector is humming along at 17%  (ROI) (Return On Investment) per year and another one is returning about 7.5 % and one is returning a dismal 2%.

Just Like Diversity Reduces Risk In Your Mutual Fund Portfolio It Also Reduces The Risk Of Owning Your Own Business.

Obviously, you should liquidate that poor performing sector of stocks, meaning dump those poor performing stocks and get that money working elsewhere, in your higher performing sectors, correct? Exactly. That’s why your long term marketing plan definitely includes tactics like A/B splitting testing.

Because whenever you consistently use any type of A/B split testing process, your results (either instantly) or over a brief period of time, that process reveals (going forward) what and where you should put your future cash and other extremely valuable resources!

(Because remember, no matter what, there’s always one particular segment of any given economy that’s typically doing far better than others! And so are the stocks of those particular companies.)

3.) Marketing plan similarity # three: And finally.. With a diverse stock portfolio working for you, you’re typically up to eight times safer than if you were to try right to pick and choose individual stocks.

And  the striking similarity between that and your current or future marketing plan is this. When you’ve got the overall synergy of strategically implementing various proven on and offline marketing fundamentals.

Start Systematically And Strategically Reducing Your Risks!

There’s far less chance of , by you not consistently implementing any one particular strategy, that your entire business can and will be sabotaged! And that’s basically the three ways your typical, extremely well balanced mutual fund is like a really good marketing plan. 

The diversification of the various proven marketing strategies, will protect your overall business progress and stability. Any questions?

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