P-Naughty

I've been trying to find a good mutual fund, and just keep getting the run around from places. Apparentaly they all have "the best" mutual fund. I'm not looking for 20% (although it would be nice to double my money in less than four years), I'm just looking for something that would get a higher rate than what CDs are doing right now. I'm just weary of all these that tend to be able to "beat the market". Anyway, I'm looking to invest $15,000 or more in one to see how things go. After that, I may add to it an even $30,000. It just depends on whether I like what I see. So does anyone have any suggestions on good mutual funds or money market account? I'll take recommendations on various investment firms as well.

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arch13

Follow the market.
A fund that diversify's by attempting to own the market will give you the longest term increase and the most protection from short term voilotility.
Historicly, they have the best long term return.
Two funds I invest in are Spider (SPY) and Federated capital appreciation fund (FEDEX). I've also been watching the new Nasdaq fund (QQQQ) and reveiwing it's prospectus.

Talk to a financial advisor, even if just to chat. History has shown that those who try to manage their investments alone have a low rate of return. Pay an advisor for advisment, even if you do not use them for their investment services. They will be happy to talk to you on the understanding that you will not be using them as long as you understand that you have to pay for their advice.

Don't assume you can figure and beat the market, no one can. patient investing with an understanding that risk is inherant is needed.

You may wanty to look at creating a CD ladder with say $10,000 of your money, and invest $5,000.

Please read The Intelligent Investor by Benjamin Graham, it is considered the source of common sense in investing. It is so well known in fact, that is required reading in nearly every business school.

And remember, I am not an investment proffesional.

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jhkayakr

How long are you planning on keeping your money tied up? I have mutual funds I have held for over 10 years. The longer you keep your money invested the better. I would invest direct with a mutual fund company and avoid the middle man. Pick a no-load fund also. Check the Morningstar ratings.

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Squeegibo

If you have the time and energy to do your own investing, avoid mutual funds. Most fund managers are paid for the amount of money in their fund, not for the quality of their returns. Having said that, if you can't devote the time to investigate your own stock purchases, look for funds whose managers are deeply invested in them. Also look at bond and alternative asset funds. The more markets you are invested in, the less risk you take in one market. Overseas funds (like Japanese markets, or general asian markets) and commodities are less correlated with US and European markets.

I also encourage you to speak to an investment professional. A little expert knowledge goes a long way in finance.

nofnway

I'm no financial guru but if anyone could truly predict the stock market He'd have all the money by now.....I've followed a few experts...read a bunch of books and learned a few hard lessons....If you are in it to win it you have to be in long term...Indexes over the long haul beat almost all mutual funds (http://www.ifa.com/book/book_pdf/overview.pdf Point 5)

Invest consistently over time....learn to do it yourself....no one and I mean no one will watch over your money as well as you. Professional advice is worth paying for, but be cautious of the giver...know ahead of time what he stands to gain.


Just 2 cents from the cheap seats....

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abscondo

You're not going to double your money in four years, so put that idea out of your head right now. It's not impossible, but the odds are so long, and you'd have to take on so much risk that it would be foolish.

arch13 makes many good points. One point where I would disagree is on the Nasdaq index. Also, I think it is possible to invest for yourself IF you educate yourself first.

jhkayakr also makes good points. For how long are you willing to part with this money? If you're considering the stock market, your time horizon should be years. (And do you have several months' income set aside for an emergency?) Absolutely, no-load funds -- but watch the expense ratios, too. Read all the free stuff you can at Morningstar. Check out FundAlarm too.

Beware of chasing performance. Just because a fund did great last year doesn't mean that it will this year or next year -- sometimes quite the opposite, in fact. Look for superior performance over long periods of time.

There is no "best" mutual fund for everyone. If you're looking for a simple answer, one specific recommendation that I usually make for people who want to start investing, and who want to keep things simple, is the Vanguard Wellington fund (VWELX). It's a balanced fund, roughly 60% stocks/40% bonds (bonds help reduce volatility). It's no load and has very low expenses. It will never top the lists when the market is booming, but over the long haul (it was founded in 1929 -- great timing, huh?) it has been a steady performer. Morningstar gives it the top rating of 5 stars. There are other, similar funds (Fidelity's is called Puritan, I think) and I'm not dismissing them, I'm just recommending based upon my personal experience.

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