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Mutual Fund suggestions? |
I'm thinking about investing in a mutual fund with average to above average risk- less than a $1,000, for at least 2 to 3 years. Any suggestions on good funds, or what I need to look for in a fund. This is my first time investing. State Farm Growth Fund has only a $100 minimum and the expense ratio is below a quarter of 1%, which is about as low as it gets for non-institutional customers of mutual funds. The return over the last year has been 18%. I don't know how you buy it - maybe you have to be an insurance customer. (I have a brokerage account with another mutual fund family, and I can't buy it through them.) How about Chinese emerging markets? Baby boomers are getting older, and will need more healthcare, so Healthcare wouldn't be bad. Search for a mutual fund that follows these sectors. the best funds over the last 5 years have all been in the Latin American market. Volatile but paying off well. I'd recommend buying stocks. Mutual funds don't give as good of a return as stocks do. The mutual fund managers and employees have to get paid, which cuts into your earnings. In addition, they often pay advisers to recommend them, so your adviser is earning money as long as you own the fund, which further cuts into your earnings. Mutual funds add middlemen, which adds cost, so go direct with stocks. |
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