Lux Investing

Mutual Fund?

I like to invest in mutual fund on monthly basis (SIP). Which plan is doing good in the market knoww? Can any of you help me?

Public Comments

1. It depends on how long you're going to invest and what your financial situation is. For retirement I like index funds because they are the standard all managed funds go by and the expenses are low. The younger you are the more stocks you should have in your portfolio because you will be able to tolerate more risk. Vanguard has funds set up for retirement that allocate proportions of you money into bonds and stocks based on your time frame and risk preference. They then change the allocation as you get closer to retirement.(The closer you are to retiring, the less risk you take)_ They have names like Target 2030, meaning you plan to retire in 2030. I contribute monthly to the target 2035 fund. This is probably a good time to start investing in such a fund. We were over due for this sell off and it may last a while longer, but you will be buying over the long term and starting in a dip. Good Luck
2. I prefer "balanced" funds which include both stocks and bonds. Two of the best are Oakmark Equity & Income (Symbol OAKBX) and Permanent Portfolio (Symbol PRPFX). If you like index funds I recommend ones through AARP. You can research them at www.morningstar.com.
3. T. Rowe Price All you need is to let them take a minimum of $50 out of your checking acc each month to start. You can bypass their minimum initial investment of $2500-
4. Unhedged risk does not lead to outside returns. Basically, you should just buy an index fund like the SPDR - you can reduce risk and achieve the same average return. S and P Depository Receipts follow the S&P 500, and outperform 90% of managed mutual funds.
5. Personally, I would not invest in mutual funds, unless you are well informed on them. About 75% of all mutual funds underperform the stock market. All of them have management fees, usually between 1% and 2%. And many of them have sales loads. Your first option should be to fund fully a retirement account. If you do this, and you have extra cash, then one of the best things you can do is open a DRIP Plan. Go to : low-cost-stock-recommendations .com They have a DRIP Section and it is free. These powerful investment plans are seldom talked about because brokers make very little money when they suggest them. Yet, they have proven to be one of the best, if not the best, long-term strategy on Wall Street. They are perfect for small investors, as well as big investors. They are safe and allow you to not care about whether the market is going up or down. They are a must for any serious investor. I strongly recommend looking into it. They are great plans. Good Luck