2006-07-30 04:24:35 · 5 answers · asked by kalu 1 in Business & Finance ➔ Personal Finance
Don't care for mutual funds. Had them in the 90's and they were my worst investment. Funds can lose value just like stocks. They even underperformed the market. In the early 2000, some funds lost over half or there value and have yet to return. People panic and start pulling there money out. Take control of your money, don't let someone else make decisions for you.
2006-07-30 05:08:23 · answer #1 · answered by Grandpa Shark 7 · 0⤊ 0⤋
Depends on what fund you are planning to buy and what is your objective. Say you are saving for 20-35 yr old young man/woman and you are planning to save for your retirement, then there is no point of looking at 5 year period as well it doesn't serve your purpose if you choose a money market fund.
If you meant equity fund, 3-5 years should be the minimum period for you to stay invested and longer you hold it the volatility will even out to produce reasonably good returns compared to other investments.
Good luck.
2006-07-31 03:40:26 · answer #2 · answered by glib 3 · 0⤊ 0⤋
Yes and no both.
These type of decisions have to be taken taking into various factors particularly
(i) age - less the age more shares/M Fund based investment can be made. Seniors should minimise exposure to these type of investments. Thumb rule is youngsters should not invest more than 30% of investible funds of family whereas senior citizens should remain below10%.
(ii) aptitude of risk - persons with conservative approach should avoid.
(iii) requirement time - In case you require funds after a fixed time, do not invest for that time horizon as if the market is depressed you may require more time to get your opportunity to dispose off shares/mf units. Your funds will be blocked or you may have to book loss.
The funds are likely to give you better returns in future but returns are totally unpredictable.
Out of my experience, I recommend you to invest in mutual funds under S.I.P. (Systematic Investment Plan). It is comparatively safe and risk is spread. Do not invest in one go or in a single mutual fund.
Select mutual fund wisely.
2006-08-03 09:08:53 · answer #3 · answered by PK LAMBA 6 · 0⤊ 0⤋
since when is 5 years long term?
2006-07-30 14:47:07 · answer #4 · answered by kvuo 4 · 0⤊ 0⤋
yes you should have a mutual fund until you retire that way the money builds up and u can retire a MILLIONAIRE
2006-07-30 11:27:54 · answer #5 · answered by michael m 2 · 0⤊ 0⤋