what is a good mutual fund i can invest my money in. NOTE : I can ONLY invest 2000 dollars?

Answer 1

There are several funds that over the years have had very good results. Unfortunately, past performance does not guarantee future performance. Darn. Lisa does have a point about expense ratios. They do make a difference. That is one of the two main reasons why today index funds are so popular. So one of your options would be to open an account at Scottrade and buy one or two index funds. There are large cap, small cap, mid cap, and many others besides. As one of your responders suggested, it is a good policy to diversify across different types of investments. Kind of difficult with only $2000 however. One index fund that has relatively excellent diversity is RSP. It is an equal weight S&P 500 index fund. Equal weight means that the fund has an equal value of each of the stocks unlike a capitalization weight index fund. Also has a very good 3 year record of 12% annual return. You buy it just like buying a stock.

http://www.etfconnect.com/select/fundpages/etf_funds.asp?MFID=109048

A second alternative is to go with a mutual fund that has a decent record of past performance which you can buy for $2000 forgetting about expense ratios for the moment.

There are a number of closed end fund (these sell like stocks also) GAM is one that has a good past record, but recently has not done as well. FUND also (invests in small cap stocks) FUND unfortunately is currently selling for more than it is worth.

Among mutual funds with $2000 minimums, Bruce Funds has shown spectacular results. Look for it on the internet. It is not marketed in every state however. Royce Funds has a lot of good funds. They are all small cap funds however. But boy do they perform. PENNX is of especial note. Only 2 down years in the past 15, and they were not down much. A whopping 14% annual return during the last 10 years and very consistant too.

http://www.roycefunds.com/funds/index.asp?

If you could come up with another $500, I could recommend some additional. Many have a $2500 cutoff.

Another mutual fund site to check out is the one for American Funds. They have a front end load that makes them somewhat less attractive than no load funds, but they make up for it with low expense ratios. They have very low initial investment of $250 and $25 additions. For many this is a very attractive feature, especially for those who would like to invest regularly. They have funds that have excellent performance records also.

http://www.americanfunds.com/default-home.htm

Answer 2

It is really hard to tell someone what is a " good" fund for them without knowing a lot more about what you want: a " super-safe" fund? a " big-return" fund? or a thousand different funds in between?
So, I'll just say that it is a great idea to start getting invested, but you might have to pick your own...no big deal..do just a little reading at: http://finance.yahoo.com/funds
or at http://moneycentral.msn.com/investor/research/fundwelcome.asp?=Funds=1
You might also consider ETF's...like funds, but you can " buy-in" in smaller dollar amounts ( so you can diversify with that $ 2000.)
http://finance.yahoo.com/etf
It all looks complicated, but it's not!! Don't be discouraged...go to E-trade fill out an app...send some money and you'll have a " portfolio"...then pick a fund or an etf...and buy a little....then you can watch it for a few months....if you are happy with the results, good...if not, you change a liitle something.....when you see that it's your money and you can make it work for you ...you will get just a little more interested in finding the " best" fund for YOU...
and you'll be a lot smarter and better off for it!
Good luck!!

Answer 3

Let me assume, since you are asking here and have only $2000, this is your first investment. It should be well diversified, large cap, mid cap, small cap stocks, bonds, with both US and international stocks. The VFINX fund mentioned by Lisa is not diversified as its mostly large cap US stocks. It also requires $3,000 to invest. A Russell 2000 fund, also no international. CWGCX is a good one, only its 94% large cap, 6% mid cap, no small cap and the annual expense of 1.57% + 1% deferred load is a bit high for my taste. I would pick Vanguard's Star Fund. Only $1,000 required to invest. It is a "fund of funds" as it contains 11 different Vanguard funds which covers stocks of all sizes and all over the world. The annual expense is low, only the expense of the funds it contains, no extra management layer.

Answer 4

cwgFX is the better answer to CWGCX there are only certain places where you can get this totally NO LOAD fund and it is a pure winner. Nothign wrong with Mutual Funds people IF you pick the right one. Ariel has some winners, Oakmark as well, Dodge has a couple that should be in the 2k range. Moriningstar.com is your best place to look.

Answer 5

For a beginning investor with a small amount of money, who wants to invest in mutual funds, I would only recommend VFINX.

This is the fund that charges you the least for investing in it. That is why I recommend it.

Answer 6

Mutual funds are generally not great investments for anyone other then the people running them (too much for administration fees). I would pick a large stock with a consistant track record...and diversify as you get more money that you can invest.

Answer 7

A money market is good,also Russell 2000

Answer 8

Well, there are so many out there.....

Look at CWGCX

It's grown great for me.