2007-09-14 12:55:38 · 5 answers · asked by Anonymous in Business & Finance ➔ Investing
If you want a fund that gives the largest expected return -- then look for the fund that takes the most risk.
Expected return is directly related to the level of risk. Don't look for the best return -- look for the best return per level of risk. The Sharpe Ratio is one measure of this.
If you don't know what this is -- you should learn more about finance before investing.
2007-09-14 14:31:57 · answer #1 · answered by Ranto 7 · 0⤊ 0⤋
Depends, if you invest in stocks and know what you're doing, you can possibly get a better return. However, it will take research on your part. If you like learning about companies and investing, then if you can possibly make more than in a mutual fund.
What you get in a mutual fund is professional management (not always what its cracked up to be). Certainly make sure you invest in a no load mutual fund or an ETF. For low costs (Vanguard and Fidelity offers some very good funds) you get diversity (i.e. they buy lots of different stocks) and professional management. All you have to do is decide which funds to invest in, which still requires a bit of research.
So I would start with Mutual Funds or ETFs and then as I build my savings, decide if I really want to be an involved investor and branch out and invest in individual stocks. Keep the amount small at first, about 4-5% of your total portfolio in individual stocks.
Good luck!
2007-09-14 20:21:15 · answer #2 · answered by Dave 3 · 0⤊ 0⤋
property every time --- MF and stocks are far too uncertain in any market --- how can you pick THAT particular MF or stock that will give you steady capital and or income growth over the years without constant monitoring (and i mean daily not monthly quarterly etc) --- if you are prepared and have the software then shares traded daily can be very profitable --- there is an electrican in a country town that has made over a million dollar AUS in 3 years using the Darvas method (check the web) --- truly relying on MF or brokers is gambling ---- have fun
2007-09-14 20:08:39 · answer #3 · answered by Waterdragon 7 · 0⤊ 0⤋
Stocks if you do your research and willing to take risks, MF's if you want to play it safe, but keep modest returns if the market is doing good.
If you invest into stocks, make sure not to waste money on newsletters from the "pros." Just stay up-to-date, read the wall street journal, and start out researching companies you know or use (coca-cola, microsoft, Colgate...). Good luck
2007-09-14 20:10:59 · answer #4 · answered by james24 3 · 0⤊ 0⤋
look this
2007-09-15 02:09:49 · answer #5 · answered by colfab60 1 · 0⤊ 0⤋