What about Vanguard institutional index, institutional?

Question

I want to invest 401k

Answer 1

I saw that you are asking a lot of questions on funds that are available in your 401k. Due to the collapse of companies like Enron and to the recent bear market, your employer and your 401k provider have an increased fiduciary responsibility in choosing the funds available in your 401k. This means that they can only offer funds that are in the higher percentiles for risk / reward.

What you should be asking is what percentage of your money should you be putting in each asset class. Over a long period of time, asset allocation (how much or the % of each fund) is the number one determinant of return in a portfolio not the individual funds. Go to a site like http://www.motleyfool.com and read about asset allocation, modern portfolio theory and efficient frontier.

Answer 2

Your company should have provided you with a list of funds that you can invest your 401k in. Is that on the list?

To receive the best return over a long period of time, you should really invest your funds in more than one mutual fund. You should pick several with different investment objectives. Perhaps a small cap fund, a foreign stock fund, a large cap fund, and perhaps even a little in a fixed income fund.