need help with picking a mutual fund...?

Question

i belong to sharebuilder or ing direct now and im trying to decide on a mutual fund. im 33 with no retirement so i think im looking for something with a quick return but that comes with higher risk. i have very little up front money to start with right now so a no load fee as well. should i be looking long term at 33 or getting into a higher risk one now and maybe selling in a few years? im new to investing but thanks to a lot of you and your answers on here ive been makeing some progress..thanks in adance.

no..i dont have an ira..the company ive been at for the past few years is talking about getting one but i have nothing as of now.

Answer 1

Okay... you're making a little progress and that's good...add this bit to your new knowledge: What your employer would provide for you is a 401k plan...but what you provide for yourself is an IRA...very similar things, but different in a lot of ways when it comes to how much you can put in, and how it will or will not be taxed, etc.
Sooooo, if you are " on your own"...you should see if sharebuilder or whoever can make your account an "IRA account"...so that the money you add is going for the long term future/ retirement....
You got the absolute right idea when you say get into high risk now and sell later....you're " catching up" just a little...
right now what really is making nice returns is the " international" markets/funds.
I'm with Fidelity so I have FEMKX and also FLATX....first one covers many " emerging markets" countries, second one just the Latin America countries.... and that is where money is being made NOW and for the next few years....Almost all fund companies have similar funds...you can look at " emerging markets, Latin America or countries they call "BRIC" ( Brazil, Russia, India, China).... For awhile at least that is where you want your money to be....and it should grow at a 20% clip..( we hope)
While you're adding and while it's growing...keep reading ... things change and you can change your investments on-line when they do...be ready and able... you may be able to start purchasing small amounts of ETF's in a year or so....just a few shares in this country or business and a few shares in some others...( sort of creating your own " mutual fund"....keep reading and it will all be understandable to you...it only sounds complicated at the beginning....pretty soon you'll be one of the " old guys" at a coffee shop looking over all the financial news!!!

Answer 2

Mutual funds have information listed on their goals and their previous returns. If you want higher potential returns at the cost of higher risk, just look for funds that have that as their investment strategy. You can also look at historic returns and find stocks that have consistently performed high (but be careful of buying into a stock that did very well last year, because often a stock that does great once can't repeat the performance. Look for consistent performance.)

Also, in general funds that are targeted at growth stocks and emerging markets are built to try to earn high returns but be more risky. You should probably start looking there
Do consider your fund in relation to your entire portfolio (your stocks, etc.) If you own a lot of international stocks, for instance, an emerging markets fund might not be the best idea because you want more diversification.

Incidentially, when you say "no retirement" does that mean that you don't have a 401[k] or a retirement fund like that? If that's the case, that's probably a bad idea. Often employers will match retirement account contributions (up to a certain amount yearly) so you can essentially double your money right off the bat by investing in a retirement account. Also, the money is tax-deferred, which means that you only pay taxes on the retirement money when you withdraw it. Because you will probably be in a lower tax bracket when you are retired (since you won't have income), it means that you pay less taxes. Look into a retirement account if you don't have one--33 is not to early to save for retirement.

I'd also recommend talking with a certified financial planner. I'm not a professional, and even if I was I couldn't help you the way somebody looking over your finances with you in-depth could.

Answer 3

You want to look at performance and risk. If a fund is taking more risk than the index are they delivering excess returns? The beta is a measure of risk. You also want to see positive alpha. You can find all that data on Yahoo finance.

Answer 4

Fidelity Contrafund, 5 star rating from Morningstar and Lipper Services. One of the best out there, a no load in or out. It beats the S&P consistently, in good and bad years.

Answer 5

Vanguard S&P 500 index fund.

Answer 6

Have you looked at Vanguard? Their funds are the cheapest to maintain.

Answer 7

JAOSX, UUPIX