is easy to invest in mutual funds?

Question

Is it easy to invest in mutual funds? I find it very difficult to understand. I will get into college in 2009 and I will like to invest. I put like 6000 for 6 years in vanguard, is that good idea?

Answer 1

The idea of mutual funds is for those investor who want to have a piece of mind. If you want to invest your money so that you can used it for your school fee, I would recommend those funds which are invest in the stock market. These type of funds are high risk, better return.

Answer 2

Hopefully you put the money into low-risk funds if it is for a short term. Since we may be heading for a recession, now is not a good time especially if college is only 2 years away. If the investment is long term, like the 6 years you mentioned, that is fine and higher risk is fine too. If you put large sums in, try not to do it at one time. For example, if you have $10,000 to invest, invest $1000 over 10 months. This can catch the lows of the market. What if you put 10,000 in one month and the market drops 20% in one week? You would be $2000 down within one month!
I would also recommend the Vanguard 500 index fund(VFINX). It has very low fees and good long term performance!
Continue to add monthly to your fund and never touch it. You will be very rich some day!

Answer 3

If you are going to enter college in 2 years, won't you be needing the $6000 then rather than in 6 years when you will have finished college? 6 years is about the minimum time to consider investing in a mutual fund. 2 years is much too short a time.

To answer your specific question Vanguard is on the internet. You can go to their site, set up an account and either set up a direct transfer from your bank account or mail them a check. It is that simple. My favorite Vanguard fund is the Global Equity Fund. Better than average return.

https://personal.vanguard.com/VGApp/hnw/funds/snapshot?FundId=0129&FundIntExt=INT

Answer 4

Yes! It's very easy to invest. Try in best company's funds like Reliance Power Sector, Kotak 30 Growth, Principal Tax Saving. Do your best investment in Growth option. If you invest in current, you will get three times of your investment after 3 years than bank. Investment in Mutual fund is less risky than share and getting high return than Bank. Keep processing your investment at the earliest. Don't be late be fast.

Answer 5

stay removed from energetic mutual funds because of the fact the final public do not beat the passive ETF undercover agent (the SP 500). There are a pair hundred ETFs, that are surely a basket of shares ran by mutual fund businesses, which furnish greater advantageous tax breaks (you pay taxes you in no way see whilst somebody sells their shares of a prevalent mutual fund), a number of which would be shorted (customary mutual funds can not be shorted) and you will positioned stops on them in case the ETF is going south. you need to purchase ETFs like customary shares. in case you do not opt for to apply a internet broker provider, you need to use the telephone and sign in with a customary broker provider and then merely tell him/her to purchase an ETF. a customary broker provider ,could have a minimum, however the internet brokers regularly do not. additionally evaluate the purchase and sell fees (that are in each and every single place so shop around). verify you're taking the purchase and sell value into attention whilst finding at how plenty you opt for to speculate. case in point if the purchase value became into $7, in case you invested $one hundred, it can be a 7% dent on your investment, yet whilst it became into $a million,2 hundred the dent could in ordinary terms be .fifty 8%.

Answer 6

Vanguard has lots of funds, so it would depend on what fund you put your money into. They are a large and reputable organization. Many of their funds are rated very highly, but some are mediocre.