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What are good sectors to invest in for a Roth IRA?


I have a Roth with AXA that's only returned $400 on a $4,300 investment..is there any sector that would improve my growth?

I've had the account for about 2 years.

You have more than one good answer so far. I too like China. Its growith is 3 to 4 times faster than the U S. India also. But that would not be appropriate for a large amount. A well diversified fund that has a lot of merit is Vanguard Global Equity Fund. Extremely well diversified which is very good for a retirement account. By the way, Chinese funds are going gang busters. But with the small amount that you currently have, there is really too much risk currently. Not more than maybe 10 to 20% should be invested there.

What was the time frame for those results? One year, one month?

Put it in a high growth fund and try not to watch it.

I'd put half into an overseas growth fund, and half into a domestic (US) growth fund.

Gold/precious metals and China funds. Good for diversification purpses - not for 100% of your portfolio.

AIM and AllianceBernstein each have a really good China fund.

Oppenheimer has a good gold fund.

If it is in an annuity - get it out. The fees associated with an annuity will slow the growth of your money.

I believe in a simple diversified portfolio for a Roth - because this is not a trading account, this is money you want to retire on. I would split future investments into four/five types of funds:

1) Bond fund - must have some money in fixed interest.
2) Small Cap Growth Fund - must find tomorrow's giants from today's small fry.
3) Large Cap Value Fund - multinationals that make money year in and out and pay dividends.
4) Foreign Fund - get some protection from dollar weakness.

and - when you have a larger stash - a money fund so you can buy more of any fund when you think it is depressed or somewhere to put the profits if you sell all or part of a successful fund.

Some people would start with an index fund and others would suggest sector funds which are polar opposites - one is totally passive because the index fund cannot outperform the index itself and the sector fund is volatile because you are exposed to one industry i.e. real estate or insurance.

Putting your money in AXA (or any insurance company or bank) is a way of securing expensive investment products with poor or no advise.

You're paying for advise and getting none.

You have two choices;
A. get another commissioned broker that can take the time and help you set up an "asset allocation". If they suggest a variable annuity.... run away as fast as you can.

B. Transfer the account to Schwab or Fidelity (both offer no fee investments with good "hand holding" for the new investor. ALSO: Pick up a couple of books on Retirement Investing. Set up an "asset allocation" model for yourself.

Most important:
Stay away from "fad" investments or the "hot" investment for the quarter.

You're asking for specific investment advise from strangers whose qualifications and motives can't ever be known by you. Don't make the AXA mistake worse.

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