Question : What is the best way to pick a long term mutual fund?
I am a 25 year old looking to invest 10K in mutual funds. I am not planning on touching it for many years to come. What is the best way to pick a long term mutual fund?
- asked by David J
All Answers:
Answer #1
Index fund.
- answered by Kyle B
Answer #2
I would open an account with an investmentmanagement firm. I am opening a ROTH IRA accountwith T. Rowe Price. The advantage of having a rothIRA over a normal mutual fund is that it is nottaxed every year and you can still withdraw fromthe fund if you have an emergency and it is aretirement acount set up for you. T. rowe has manyno load mutual funds available. Many of theirmutual funds are rated 4 or 5 stars and have largegrowth up to 20% within 10 years. You can checkout their website and answer their screeningquestions to see what options are best for you,more than likely you will be directed to growthmutual funds because of your age. There are othercompanies like Fidelity or Vanguard you could lookinto as well.
- answered by cad monkey 208
Answer #3
2 things:1) A generic equity fund with a superiorlong term record from Vanguard, Fidelity, or T.Row Price, like Equity Income. What seems to be ahot flavor at the moment will be garbage in a fewshort years.2) It's not the fund that makes youmoney - it's what you do with the fund. Mostpeople get jerked around too much by fear andgreed, and THEIR returns in the find are LOWERthan the FUND's returns. You really have tocommit to a fund for many years and it's alwayseasier to do with a generic fund.
- answered by slavaret2
Answer #4
Just let me pick them for you (I am a PortfolioManager with over a decade of experience in theStock Markets)
- answered by Frank Castle
Answer #5
Hello David,I can explain how to help you find thebest mutual funds by listing some of the factorsthat I look at when evaluating mutual funds. Someof the factors include historical performance,expense ratios, consistency of performance, andprobably most importantly, the background andexperience of the portfolio mangers and analyststhat support the mutual funds. I tend to be veryselective when it comes to investment experienceand educational background. You do not necessarilyhave to pay more for a higher quality mutual fundmanager, so why not pick mutual fund managers withthe best credentials. The other issue you shouldconsider is which are the best mutual funds foryou. The best mutual funds for you may not be thebest mutual funds for someone else. Some peopleprefer value mutual funds while other peopleprefer growth mutual funds. Volatility is also avery important consideration. Some people do notmind volatile funds if the returns justify thehigher risk while other people are not comfortablewith mutual funds with high volatility.There aremany good mutual fund companies. I am mostfamiliar with no load mutual funds based in theUnited States so I can provide you with a few noload mutual fund companies such as Vanguard, T.Rowe Price, Fidelity, Dodge & Cox, Royce andMetropolitan West. No one mutual fund company isthe best at all investment strategies. T. RowePrice is very good at domestic equity strategieswhile Royce specializes in smaller cap valueinvestments. For fixed-income, Vanguard,Metropolitan West, Fidelity and T. Rowe Price areall very good.I hope this helps.Michael A. Weiss,CFAThe EditorThe Mutual FundInvestor
http://www.mutualfundinvestor.net
- answered by The Mutual Fund Investor
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