Mutual funds - $5000

[hillfronter83]

I was doing some research about some of the mutual funds mentioned above since my 401K brokerage account only allows mutual funds. Here is the pdf I came up, for those of you might be interested. The performance data are from Morningstar as of 3/7/2014. Total assets and holdings data are from Bloomberg and might be a little older.

 

 

Mutual_funds.pdf

[ourkid8]

I know the chou opportunity fund does not have a long track record and you will probably rule it out because of it but look at the long term results of chou associates fund  (choufunds.com) and you will understand why i highly recommended it. 

 

Thanks,

S

 

I was doing some research about some of the mutual funds mentioned above since my 401K brokerage account only allows mutual funds. Here is the pdf I came up, for those of you might be interested. The performance data are from Morningstar as of 3/7/2014. Total assets and holdings data are from Bloomberg and might be a little older.

[tiddman]

Most mutual funds do not beat the market average over the long term, especially considering fees and expenses.  There are different market averages and indexes but the S&P 500 is widely known.  It is also easy to invest in the S&P 500 in amounts as little as a few $100 with very little expenses.

 

For these reasons, investing your money in a stock index with little or no fees is actually a great way to outperform most mutual funds over the long term.  If you contribute to this investment on a regular basis (say every month or quarter), you'll also smooth out the highs and lows.  If you invest a fixed dollar amount, when the index is lower you'll buy more shares and when the index is higher you'll buy less.

 

This is a great way to get started while you do research and try to pick funds or stocks.  Picking funds or stocks that beat the market is actually really hard.  Everyone you talk to will give you advice, and that advice is usually based on how that investment performed over the past 12-24 months, which often tells you absolutely nothing about what it will do over the time period that is important to you, namely the next 5-10 years.

 

Good luck!