What are some important things to look for in mutual funds and how can one learn to understand them?
2007-10-29 10:31:35 · 9 answers · asked by guy 2 in Business & Finance ➔ Investing
Index funds with very low expense ratios. Try the vanguard index 500 or wilshire 5000. They provide instant diversification. Buy and hold hold hold
2007-10-29 10:34:52 · answer #1 · answered by loudwalker 2 · 0⤊ 0⤋
Mutual Funds are a great investment tool if properly managed. Make sure you have a great advisor.
You may also want to consider Segregated Funds, which only available through an Insurance Company and here's why:
Segregated funds combine the growth potential of a mutual fund with the security of a principal guarantee.
Here’s a quick summary of the added features that can make segregated funds an excellent alternative or addition to mutual funds.
Mutual Funds and Segregated Funds both have:
1. Professional portfolio management.
2. Diversification among asset classes and management styles.
3. Grow a portfolio while diversifying risk. And
4. Liquidity: easy access to your money through daily price valuations.
Only Segregated Funds can:
1. A guarantee of the principal (or a specified percentage) at maturity.
2. A guarantee of the principal (or a specified percentage) at death.
3. Ability to bypass probate and keep financial affairs private.
4. Potential to benefit from market gains using Principal resets. And
5. Potential creditor protection in case of bankruptcy.
Check out all your options before you choose your investment and your investment manager.
2007-10-29 17:42:21 · answer #2 · answered by Joel Sopp 2 · 0⤊ 1⤋
For a beginner I believe there is no better place to learn about mutual funds than vanguard.com.
Vanguard is pretty much the gold standard when it comes to mutual funds. Their website will help you determine your risk/reward tolerances before you invest any money.
2007-10-29 19:37:43 · answer #3 · answered by Anonymous · 0⤊ 0⤋
No load funds are the way to go. They perform as well as loaded funds. Loads are basically commissions.
Most funds typically do not even outperform the S&P 500 or most other indexes for that fact. I would find an S&P 500 fund... You can't go wrong with that.
2007-10-29 18:44:28 · answer #4 · answered by Anonymous · 0⤊ 0⤋
First, you need to know your investment objectives, time frame and risk tolerance.
Generally, you need to look at funds' investment objectives, holdings, fees, stability of management and performance record. There's a great book for starting investors: "Mutual Funds For Dummies."
2007-10-29 18:29:15 · answer #5 · answered by npk 7 · 0⤊ 0⤋
There is no one definition of best, that will suit everyone.
You have to balance the risk with the income potential.
The right percentage of each will vary with your age bracket.
The beauty of mutual funds, is you can spread that risk.
You do this by diversifying your investment over your holdings.
A good investment counsellor will help you determine this.
2007-10-29 17:39:12 · answer #6 · answered by Robert S 7 · 0⤊ 0⤋
while it really depends on your stragety expenses are the key and that is why you do NOT want segerated funds. However if you are considering indexes you would be better off with ETF's for they do have lower expenses overall. But expenses and solid performance (5-10 years of it) is what you need to look for.
2007-10-29 18:14:26 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Index funds. But there are alot of options there. Look at www.fool.com and www.vanguard.com
2007-10-29 17:55:05 · answer #8 · answered by Kyle B 4 · 0⤊ 0⤋
It depends on your investment objectives and your tolerance for risk.
2007-10-29 17:34:48 · answer #9 · answered by rhymingron 6 · 0⤊ 1⤋