What mutal fund sould i buy?

Question

i have $3000 i am very young have not had my first job yet but i will in 2 years or less. i want something for long term im think like index funds or something esle what do you think also something with a good history in the past ten years

Answer 1

An all in one choice for a young investor: should have some international and small-mid cap exposure in addtion to US Large cap stocks.

I recommend Vanguard's Global Equity Fund, 40% US and 60% International stocks. VHGEX. Very good performance record. Need $3000 to start an account. You can invest directly with the Fund company and pay no fees. Good Luck!

https://personal.vanguard.com/VGApp/hnw/HomepageOverview

Answer 2

Be very careful of answers you receive from strangers whose qualifications and motives can never be known by you.

As a new investor with a limited amount you'd want the most diversification with low expenses.

The S&P 500 index would be a great answer for that. Places to go would be;
Vanguard
Fidelity

You can also do ETF's like;
SPY
IVV

Eventually you'll need Foreign exposure. A great fund for that would be;
Dodge And Cox International

Read some books on Mutual Fund Investing and Stock Investing. It will help you the rest of your life.

Answer 3

One of the best funds available IMO is the CGM Focus Fund (CGMFX). The fund permits its fund manager to do almost anything with the funds, including selling stocks short, which the fund has done very successfully. It's five-year annualized return is over 28 percent/year.

http://finance.yahoo.com/q/pm?s=CGMFX

The minimum investment is $2,500. Note the fund lost about 18 percent in 2002, so it is not a fund for the faint of heart.

Notice the above performance data is a/o Aug. 31, when the fund closed at $48.04. It's now at $55.72. So you might have a chance to buy the fund at a lower price in coming months. You might want to call and see if they will let you dollar average in....

http://finance.yahoo.com/q/hp?s=CGMFX

You must follow any fund you buy carefully, including this fund. Its fund manager is 65, and there may be a drop in performance if he retires.

Good luck!

Answer 4

You need to do research on what will be best for you short-term and long-term financial goals before you start to invest your money in stock funds. The following web sites will give you a good starting point for you.
You should consider first saving for a basic emergency fund first.


Moneytalk radio show
http://www.bobbrinker.com/

Mutual fund show
http://www.mutualfundshow.com/

Ric Edelman Radio show and books
http://www.ricedelman.com/

PERSONAL FINANCE: NEWS & ADVICE
http://www.bankrate.com/

Many companies sell Index funds the company that started it first and one of the best No-Load fund companies is Vanguard.
http://www.vanguard.com/VGApp/hnw/CorporatePortal
No-load fund mean no commissions, so you can invest more of your money.
These are companies that I have money invested with Fidelity and TDAmeritrade
https://www.fidelity.com/

Check with your employer to see if you qualify for a 401k, 403b or 457 retirement account investment plans. You can use one of these plans to defer your taxes until you retire.

Also investigate ROTH IRA account. If you are very young and your income is not very high it might be better than a tax-deferred plan. In a Roth account there are not taxes charge when you assets grow and when you take it. Read all terms of the account before investing.

Answer 5

Avoid loaded funds and annuities. These are typically sold by commissioned sales people. If you call Fidelity, Vanguard or T Rowe, they can give you pretty good advice on how to invest the money. They are all salaried and the funds have no load. ETFs are great too, but require a little more research on your part.

Answer 6

Kinetics Internet.