how do I start investing in mutual funds?
I don’t know which ones are good or where to start? A friend said I should start at a charles swab. Which ones are good, I’m 32 years old and don’t mind high risk right now.
One other question. Mutual funds are made up of several stocks now do these stocks ever change or are they always the same stocks?
Tags: charles swab, high risk, mutual funds, stocks
I invest with Fidelity Investments. Look for mutual funds that have no sales load and minimal expense ratios. Typically 0.2 to 1.2%, depending upon the fund.
Also consider Vanguard and TD Waterhouse (or whatever their new name is). The stocks within any fund will vary. This is measured by the turnover ratio. Charles Schwab is also fine, as long as they do not charge you a commission.
A good place to start comparing funds is either http://finance.google.com or http://nytimes.com/business/ .
Consider funds with Morningstar ratings of 4 or 5 stars. Past performance is not always a good predictor of future performance. That is called chasing yields and is usually a poor investment strategy. Look for funds with consistently higher returns.
My favorite fund in Fidelity Contrafund FCNTX. Last year’s return was 18.6%. Although it is not the best performer in bull markets, it holds up extremely well in sideways and bear markets.
Ok, Charles Schwab, Fidelity, T. Rowe Price, and there are several others are discount brokerages. They all have advantages and disadvantages, and I urge you to call and talk to all of them and get more info. You can even ask them about some different mutual funds and see what they say. As far as which ones to choose, well, that’s like predicting the lottery numbers, however mutual funds for a long term investment usually do pretty well. The stocks that make up a mutual fund do change. The mutual fund manager actually decides which stocks will make up that fund. Some funds are specifically catered to a certain type of stock however, so while a stock may change within the fund, it will still be one of the same type. There is a wealth of information on http://www.money.com. That is CNN’s money website and it is linked to Fortune and Forbes. Lots of good stuff in the investing 101 articles. Something else you might want to find out about is if your company offers a 401k. If they do, you should put some into that as well. If not, you might want to consider an IRA, either Roth or traditional. Good luck!
i think you r quite elder than me then also i am trying to advice u
in mutual fund u dont need debet account nor a pan card no. in this u jucst go to ur financial advisor and consult with him/her tht which one is better for u when i started the begining amt was 500/- but now u can start with only 100/-
If you are a new investor and want to buy shares in the Stock Market. the best thing to do is to invest in mutual funds.
Mutual Funds companies have qualified fund managers to use the fund invested by investors to buy stocks in the Stock Market.
They can buy good stocks which have a better chance of making profits so that it can pay you dividends and also enhance the value of your investment.
Vanguard is the best place to start for any new investor when it comes to investing in mutual funds.
Read "Mutual Funds For Dummies." Its a great introduction to the mutual fund world.
Contact a local Primerica Rep. They will answer your questions and they may be able to contact you to someone that can recommend the funds that best serves your risk tolerance.
The mutual funds are a bundle( sometimes 50 to 100) of different stocks, managed by one person that gets paid upon the success of the fund. If one or two of the stocks are not performing, he has the power to replace them.