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Which mutual fund is best for invest for 6 to 12 month.? |
i would like to invest for minimum day. The opinions are correct on this board about your short investment time period. Especially considering the markets nervousness the last few days..this is why you need at least a couple of years min to invest in the stock market. 6 months is just plain gambling. There is no mutual fund that is ideal for a 6 to 12 month time period. Mutual funds were made to be long term investments. Putting money into any financial instrument for only 6-12 months is not "investing", it is "saving", and you would not (or SHOULD not!) expect to use a mutual fund as a savings vehicle. Best bet is a money market account, or an online bank for such a short term. Most mutual fund companies offer Money market accounts that pay 3-5%, I've seen adds for online banks that pay as much as 5.05% The last person has the best answer. No matter what risks you are willing to take, for an investment horizon of 6-12 months, you should go with a money market mutual fund (mmmf), if mutual funds are your heart's intent. However, most mmmf are NOT insured or guarantted by the FDIC or any other goverment agency. There are some that are, but they will offer you a lower yield on your money. Plus, depending on how much you looking to put aside, you may have a small account fee from whatever company you go with. I would suggest checking with your local bank first, to see what rates they offer, and compare those to companies like Vanguard, T. Rowe Price, or Fidelity. Money Market fund (although I'd prefer GMACBank or INGDirect where it's fully insured and gets a higher rate). 6-12 months is not right for a mutual fund (its ok for an ETF or stock though) mutual funds are LONG TERM investments. Vanguard Federal Money Market Fund. Low risk, and relatively good returns. For such a short term, I would not recommend investing in funds based on stocks or bonds. Vanguard Emerging Markets ETF - A HOT stock over the past couple years: it is up 50% over the past year and now is the time to buy after a small 5% recession over the past week. Emerging markets have been very bullish over the past two years and i do not forsee a crash in the near future. If you are looking for med. risk and very high return in the next 6-12 months i would invest in the Vanguard Emerging Markets ETF. Since your time horizon is so short, the only mutual fund you should invest in is a money market account. Go to http://www.vanguard.com to find a good one. Or, you can just stick to a 6-month bank CD. |
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