|
|
| *Home>>>Fidelity Fund |
Are sector funds appropriate for investing in a ROTH IRA? |
I am 23 and I have not been doing well with the 500 index fund from Vanguard. I am looking at Fidelity's Energy Fund as well as the Select Defense and Aerospace portfolio. They are both highly rated by morningstar. I want an average risk with high returns over the long-term. What do you think? Stick with an index fund until you have a lot more built up. Sector funds are appropriate in a Roth IRA. You pay no capital gains taxes on your capital gains in a Roth IRA, so your investments there should be the funds with the most potential for growth: small caps, international, emerging markets, and so on. That's my philosophy. Others think that low risk investments (such as the Vanguard 500 index) are better for retirement accounts, since you want to be sure that you don't lose your retirement. Don't get too specialized in a retirement account (like putting all your money into one stock), but a sector fund, if you feel reasonably confident about it, is a good choice. Either of the funds you mention sound like good investments with good potential for growth in the long term. Just because a fund is highly rated by Morningstar does not mean that it is the fund for you. These funds have way too narrow of a focus for you. I'm guessing that at 23 you probably have not amassed a giant portfolio of mutual funds and that your portfolio most likely cannot handle the volatility that funds like this can have. At 23 you should be looking to invest in a fund that has a solid track record and is managed by a seasoned fund manager. Honestly I would look at any of The Growth Funds at Vanguard- perhaps a Mid- Cap Growth Fund or a Small Cap Growth Fund. Best of Luck. Stick with VFINX or a similar fund. If you want to overweight a particular sector, it's generally best not to select those that have been on a tear. Stock market returns exhibit reversion to the mean, so yesterday's winners are more likely to be tomorrow's laggards. |
| Tags |
| Forex Foreign Investment Financial Investment Fidelity Investment Fidelity Fund Exchange Traded Funds Equity Investment E-gold |
| Related information |
Not sure what your goals are but if you're young like me then I'd go aggressive since you're not looking at preserving capital and could withstand the ups and downs over the long ter... You basically have two ways to go - either you can use the "set it and forget it" target date funds or you can "actively" manage your account by picking individual funds and per... Save your money and buy a no-load, low-expense ratio indexed stock fund. After they take their cut from your money, you'll find that only about 4 out of 10 money managers will be able to beat... Andy's theory is correct. The fund paid a distribution on December 7. According to Fidelity's web site, it was scheduled to be $2.43 per share. Depending on whether you reinvest your divi... What you underwent is normal in Full form efficient markets like the United States. What it means is when you sell the buyer cannot expect to get the dividend which left him or will live him if he ... Your should have 3-6 months of living expenses in an emergency account (3 months if you have no dependents but have family who can help you out in an emergency; 6 months if you have dependents). A... Pretty much they are the same, just different names. Maybe some of the expenses are different. Also Fidelity Spartan U.S. Equity is smaller in terms of funds under managemetn so it is probably e... Depends on who you set up the IRA with. If you set it up with a stock brokerage firm, you can set it up with as many mutual funds as you like. If you set it up with a mutual fund you may only be ab... |
Categories--Copyright/IP Policy--Contact Webmaster |