Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
It is quite interesting that all of the ones you have are listed NASDAQ. Are those the only funds you have available?
---> NO. I only searched those funds from Morning Star. I am not limited.
Is this your first time in the market?
-----> Yes. I am 33 years old. I make decent money and have enough emergency fund(more than 1 year).Only debt I have is a home mortgage (3.875% fixed). I want to keep buying only until I retire.
I think using something like Vanguard Total Stock Mkt Idx Adm is the best idea. Very conservative in this environment. I also think Vanguard Total Intl Stock Index Admiral would be good to go along with it, with a lower % of coarse. This way your money is spread out.
Hi
I am newbie. I want to start buying mutual fund for long term investment.
I know it is hard to recommend which fund is good but I need to get some feedback of what I choose.
I want to buy 2 Large cap growth,2 mid cap growth, 2 small cap growth and 2 international.
So far I chose
Matthews Pacific Tiger investor-MAPTX
Matthews Asian Growth & Income-MACSX
T.Rowe Price Health Sciences-PRHSX
T.Rowe Price New Horizon-PRNHX
Touch Sands Capital Select Growth Z- PTSGX
Fidelity Small Cap Discovery- FSCRX
T.Rowe Price Media & Telecommunications- PRMTX
I chose these only based on morning star rating but I am not sure I chose right one.
Please tell me what you think about these funds.
thanks.
I own and have for a number of years T.Rowe's New Horizon and am very happy with it. I also own Fidelity Small Cap Discovery and am very pleased with it, however it is closed to new investors. If you are in a 403/401 the terms of your employers contract with them might still allow you to invest in it. As far as the TRow Price Health Science I don't own it and would not recommend anyone buy it right now and current owners may want to consider the following:
The manager of one of T. Rowe Price's top funds and two analysts have resigned, effective Friday.
Kris H. Jenner, 51, has managed the T. Rowe Price Health Sciences Fund since 2000. The fund, with $5 billion in assets, gained nearly 32 percent last year.
Along with Jenner, analysts G. Mark Bussard and Graham M. McPhail also tendered their resignations
I want to pick the funds what Dave Ramsey recommends .
As far as I understood, he recommends 25% Large Cap Growth, 25% Mid cap Growth, 25% Small Cap Growth and 25% international.
He did not recommed Bond funds. Can you suggest the best fund options within that categories based on the long term perfomance??
thanks...
I am not totally against Dave Ramsey by any means.....but I really disagree with him on the growth fund thing. I'm not against growth funds...but over the long run, they tend to be more volatile and get the same or lower returns as more conservative stock funds. Of course, there will always be exceptions.
I also disagree with Ramsey on bonds. Most people can't handle the volatility of a 100% stock portfolio. I learned this the hard way myself. Don't delude yourself into thinking you're the exception.
Morningstar.com data shows that investors tend to do best in balanced funds, which are funds that own a mix of stocks and bonds.
There are some good growth funds out there though, if that's what you really want, I'd recommend:
Fidelity Contrafund (FCNTX) or Mairs and Power Growth (MPGFX)
Best no-load bond intermediate term bond funds:
Harbor Bond (HABDX)
Vanguard Intermediate Term Bond Index (VBIIX)
I still think buying a balanced fund is the best way to go...at least initially...It's best to keep it simple at first and these funds are well diversified...you get at least 80% of what you need all in one fund. You can always add other funds (such as small cap or global/international funds) later and keep the balanced fund as a core holding. My favorite balanced funds from favorite to less favorite are:
T. Rowe Price Capital Appreciation (PRWCX)
Mairs and Power Balanced (MAPOX)
Vanguard Wellington (VWELX)
Pick any one of the above 3 funds and put money into it consistently and you will likely do well in both relative and absolute terms, assuming our economy doesn't totally go down the drain (which it might...but that's another topic).
Last edited by mysticaltyger; 02-16-2013 at 12:30 PM..
It really depends on what else he has. Also how long he has for investing. Honestly if he is 45 years old he is going to need to be aggressive. If he is in his 20's or early 30's that gives equities a good bet.
Aggressive funds are only worth it if you stay with them. Most people sell these funds when they're down and buy them after they've gone up a lot (the worst possible times for both actions). Everyone thinks they're going to be the exceptional person who will buy these funds when they're down and hold onto them, but that is rarely the case.
There are quite a few balanced funds that have matched or beaten the S&P 500 stock index over long periods...and they've done it with less volatility. Funds such as these come to mind:
T. Rowe Price Capital Appreciation (PRWCX)
Mairs & Power Balanced (MAPOX)
Dodge and Cox Balanced (DODBX)
Oakmark Equity and Income (OAKBX)
Vanguard Wellington (VWELX)
FPA Crescent (FPACX) (This one is too expensive for me but it does have great long term returns.)
Last edited by mysticaltyger; 02-16-2013 at 12:33 PM..
Ok. upon you guys recommendation so far I got below.
I got Fidelity Contrafund (FCNTX) and Mairs and Power Growth (MPGFX) for Large Cap.
T.Rowe Price New Horizon-PRNHX and Fidelity Small Cap Discovery- FSCRX for Small Cap.
Any suggestion for Mid Cap Growth?
thanks.
By the way, I think Mairs & Power Growth is the better of the 2 large cap growth funds. It has lower expenses and a smaller asset base, which means the manager has more flexibility.
Mid Cap is a very tough category to find good funds that don't have high expenses. The better mid cap funds get a lot of assets and often end up morphing into large cap funds. I personally still think you're wrong to pick only growth oriented funds. But if you must have a mid cap growth fund, I'd pick:
Vanguard Mid Cap Growth Index (VMGRX)
T. Rowe Price has a good mid cap growth fund, but it's closed due to a large asset base.
Dodge & Cox is also a great fund to add a little balance to your funds.
I like Dodge and Cox Stock also, but the OP is determined to only buy growth oriented funds....which I think is a mistake, personally...but there you have it. That said, Mairs and Power Growth, Fidelity Contrafund, and T. Rowe Price New Horizons have lower than average volatility for their respective categories.
I have Dodge and Cox Global Stock (DODWX) and despite a rough 2008, I like the fund. (Low expenses and a firm with a good long term track record with all 5 of its funds). I also like the idea of holding a fund that can find the best companies regardless of where their headquarters are domiciled.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
