2007-02-24 05:55:43 · 5 answers · asked by Kenneth P 1 in Business & Finance ➔ Investing
Nothing is 100% safe, but a well-managed mutual fund is a GREAT long-term investment. However, there are ups & downs, so they're lousy short-term investments.
2007-02-24 06:01:23 · answer #1 · answered by Tom's Mom 4 · 0⤊ 0⤋
Safe compared to what? A savings account, money market or CD at a bank is safe Most of these types accounts guarantee a low or modest return rate and usually FDIC insured up to $100,000.
If you invest in mutual funds, you are investing in the market. No guarantees, but because of higher risk, your returns could be higher or lower. Generally, mutual funds a safer place to put your money than individual stocks. That's why most all retirement plans invest in mixes of mutual funds. Some years are up, some are down, but long term averages says your money will make money and grow faster if you have the right mutual fund.
There are over 15000 mutual funds in the universe. Look for funds with great track records and experienced fund managers who have a history of outperforming the market overall. Two sources of info for you to look at is finance.yahoo.com and morningstar.com. To get you started, look at Marsico21st Century Large Cap fund symbol MXXIX or Cambiar Opportunity symbol CAMOX as examples of stellar funds with all star managers. There are others, but do your homework. Good luck.
2007-02-24 14:54:33 · answer #2 · answered by philsky 2 · 0⤊ 0⤋
Mutual funds are not safe,in fact over half of the mutual funds lost money last year.EDucate yourself and buy dow 30 stocks directly.Why would you pay some so called financial planner a commision to help you lose money?I know financial planners that are driving neons and living in rented apartments,do you really want advice from these losers.Warren buffet does not own mutual funds.
2007-02-24 14:24:59 · answer #3 · answered by Anonymous · 0⤊ 0⤋
A mutual fund is as safe as it's contained investment.
that means, there are all types of mutual funds from a "Safe" money market fund, all the way to a Very Speculative Emerging Market small cap growth fund.
Look at mutual funds as being a baskets of investments tailored to the area you wish to invest in. It is diversification within that area.
A single stock is very risky, many stocks in the same field are not as risky as the single one.
Mutual funds are the best way to start investing for someone who doesn't know about investing.
The dealer selling you the mutual fund should sell you the one or ones that meet your risk profile
2007-02-24 14:20:34 · answer #4 · answered by bob shark 7 · 0⤊ 0⤋
No.
2007-02-24 14:30:43 · answer #5 · answered by Anonymous · 0⤊ 1⤋