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| MrInvestor |
 Posted: Tue Jun 07, 2005 9:04 am Post subject: Mutual Funds |
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Investing Manager
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It's pretty safe to say (I'd guess) that Mutual funds are pretty safe investments. I really should add some of these to my real life and Sim portfolio.
Anyone have any recommendations? Any fund you've had history/experience would be appreciated and any other thoughts on Mutual funds in general. Thanks!h |
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| Dave Rathbun |
| Posted: Tue Jun 07, 2005 11:05 am Post subject: |
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CFO
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| Hmmm, let me clarify something to be sure we're talking about the same thing... money funds are relatively safe (although not insured). Mutual funds are as safe as their underlying investments. You can find mutual funds that invest in risky ventures, and have lost (or gained, to be fair) a lot of money. That's why it's important to review the mutual fund prospectus and find out what the investment goals are. You can find guaranteed funds (they invest in bonds and other "safe" vehicles), agressive funds, balanced funds, index funds... in short, saying "Mutual Funds are Safe" could be a dangerous generalization. |
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| Bankman |
| Posted: Mon Jun 13, 2005 2:39 pm Post subject: |
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Investing Associate
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Just an interesting fact:
The S&P 500 outperforms most mutual funds every year.
What does this mean? If you picked the 500 stocks in the S&P, you are better off than dealing with a mutual fund. Of course, this is not practical as the fees alone from making all those trades would be astronomical. This is not to say that all mutual fund managers are incompetent, but that a well diversified index fund can do the same thing as some of the highly paid mutual fund managers out there. |
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| Dave Rathbun |
| Posted: Mon Jun 13, 2005 2:54 pm Post subject: |
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CFO
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| Bankman wrote: | Just an interesting fact:
The S&P 500 outperforms most mutual funds every year. |
Buy SPY  |
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| jumbojack |
| Posted: Mon Jun 13, 2005 4:48 pm Post subject: |
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Investing Sr. Associate
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hey threadjackers  did mrinvestor ask about ETFs? i didn't think so |
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| Bankman |
| Posted: Tue Jun 14, 2005 4:32 am Post subject: |
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Investing Associate
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| jumbojack wrote: | | hey threadjackers did mrinvestor ask about ETFs? i didn't think so |
Relax. I brought up the S&P 500 as a contrast because that is what many mutual funds base their performance on. Any mutual fund that can consistently beat the S&P 500 over 5 or 10 years is considered pretty good. Thank you, Forum Police!  |
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| thacker003 |
| Posted: Fri Jun 17, 2005 5:19 pm Post subject: |
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New Poster
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| Why would anyone buy all 500 S&P? That could be a slow process. |
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| Bankman |
| Posted: Sat Jun 18, 2005 2:17 am Post subject: |
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Investing Associate
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| thacker003 wrote: | | Why would anyone buy all 500 S&P? That could be a slow process. |
No one would. That is why ETFs exist. It wouldn't be so much of a slow process as it would really be an expensive process. Not to mention the fact that stocks get added and dropped from the S&P all the time.
The point isn't to model a portfolio with exactly the same stocks as a certain index. The point is to model the diversification so as to minimize risk. |
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| clifton |
| Posted: Mon Aug 29, 2005 1:25 am Post subject: |
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New Poster
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| What is the yearly ROI of an average good mutual fund out there? Here in Bulgaria some of them return 25-30% yearly |
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| pinwheel |
| Posted: Wed Sep 07, 2005 8:08 am Post subject: |
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Investing Associate
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| so what exactly is a money fund vs. a mutual fund? |
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