Mutual Funds

[kraftdda]

This forum seems to have lots of very smart investors. Just looking for some advice on a good general mutual fund for taxable money. Plan on not needing but avaliable if do. Thanks

 

[cute fuzzy bunny]

Need more information...time horizon, risk tolerance, interest in reinvesting in an alpaca farm, etc...

Given the generality and in advance of other information, either Target Retirement xxxx where xxxx is your date of turning 65, or the Lifestrategy fund that suits your risk tolerance. Mix of stocks/bonds, low cost, decent returns.

 

[Brat]

Again, all of the issues mentioned earlier. A good balanced fund also has merits. Oakmark Balanced, Fidelity Balanced, Vanguard Wellington (which as some foreign equities).

 

[kraftdda]

Sorry everyone I should have been a little more clear. I am more less looking for a company, ex. Vanguard, Fidelity, ect. when I figure out which company I will be transfering my IRA, and cash accounts from the mess I currently have. Want a fairly aggressive portfolio for both, yet simple with being properly diversified. The target funds dont really interest me as I dont really know when I will be able to retire. Currently I only have 40,000 in retirement and will be putting about 12000 in cash, hopefully adding somewhere between 10 to 40 thousand in the next year as well as funding IRA for 2007. Thanks

 

[cute fuzzy bunny]

You really wont go wrong with either fidelity or vanguard.

You dont need to know when you're retiring to buy a target retirement fund. They're generally risk adjusted for the "target date" and become more conservative as you approach that date, settling into the holdings of "target retirement income" about 5 years after that date.

If you want something more aggressive but still adjust, than say...the 2025 fund, then buy the 2035 fund.

Other than setting the starting mix of foreign and domestic stocks and bonds, the date has no particular meaning; in other words, some guys in dark suits and a black car dont show up on 2025 and make you retire.

If you want something that fits a certain risk/reward profile and doesnt become more conservative, one of the "lifestrategy" funds from vanguard (and i'm sure fidelity has something like it) might do.

 

[Brat]

I agree. Vanguard has a larger menu of index mutual funds, Fidelity has a lower rate for stock purchases (incl ETFs). Fidelity has more investor centers. Each has it's strengths, both are very good.

 

[bosco]

I agree. Vanguard has a larger menu of index mutual funds, Fidelity has a lower rate for stock purchases (incl ETFs). Fidelity has more investor centers. Each has it's strengths, both are very good.

when I looked into it, I chose Fidelity over Vanguard for the following reasons: (I did not have $1 million to invest, more like half that amount).

Although Vanguard had a larger selection of index funds, a couple of the mutual funds I wanted to invest in at Vanguard were closed (health care and energy). Fido had such sector funds open. The Vanguard etfs were open.

ETFs by Vanguard or anyone else were available at Fidelity

Vanguard commissions were $20/trade. Fido's were either $11 or $8 depending on trade frequency. I am not a frequent trader, so I get $11/trade (need over $100,000). $20 seemed pretty steep and I wanted access to ETFs.

Fido had a network of 1100 mutual funds that had no transaction fees (network, however, did not include Vanguard funds, but did include Pimco, Profunds, Rydex, and many others of interest).

Ultimately, the $20 commissions put me off and I went with Fido.

I've had Fido accounts in the past and have always received exemplary service.