Posted: 5/8/2007 11:43:49 AM EDT
| Any suggestions on mutual funds for under $1k starting? Only requirement is a track record of roughly 10 years with atleast 10% gain. Thanks. |
|
All are no load funds, and on Fidelity or Schwab IRAs, $1000 minimum (or lower). My IRA CAMOX, Cambiar Opportunity Fund MXXIX, Marsico Opportunity Fund FBRVX, FBR Small Cap UMBIX, Excelsior Value and Restructuring SSAIX, my international stock exposure. 
And my 401K has less selection, but fortunately for me, the few available are decent. DODGX, Dodge and Cox Stock Fund FDGRX, Fidelity Growth AUSAX, Columbia Acorn CRMMX FDIVX, Fidelity International
|
Thanks for the information. Anyone have any dealings or information with Hodges Fund? Also, this is a little embaressing , but what is the process for setting up a mutual fund? I'm not clueless with personal finance, but in the process behind such things as setting up mutual funds, I've never had a clear understanding. Thanks.
|
i'm going to assume you are asking about setting up a mutual fund account outside of your employer's 401K or an IRA. hence, we are talking about "taxable" accounts here, as opposed to tax-deferred or tax-exempt accounts. there are two primary methods of purchasing mutual funds for a taxable account: (1) direct from the mutual fund company (2) through a brokerage firm that offers a "supermarket" of fund choices. how do these approaches differ and what are the pros/cons of each? method (1) is pretty much self explanatory: you send your money to Dodge and Cox, Fidelity, Oakmark, Vanguard, etc, and they invest it per your direction. every month you get a statement, and every january you get a tax statement (e.g., a 1099-DIV). in this case you deal directly with the fund company. the upsides to this approach are that (a) not all funds are available in "brokerage supermarkets", and (b) there is no additional cost associated with buying the fund, as there may be when buying through a supermarket. the downsides to this approach are that (a) if you hold many funds you get a crapload of paperwork every month, which you have to reconcile using a spreadhseet to figure out your totals, (b) at tax time you get a sheaf of paperwork as well, and (c) you can't easily "park" money in an associated money market fund while awaiting some event. method (2) requires a little explanation. you probably understand that a brokerage house acts as your agent for buying and selling stocks. well, they can do the same with mutual funds. hence, a brokerage house engages in a mutually beneficial relationship with mutual fund companies, such that one can buy mutual funds through your brokerage account. the "universe" of available funds at a given brokerage house is really just limited to how much legwork they do, and how attractive they are to mutual fund companies. big brokerage firms, like Fidelity, Vanguard, and T. Rowe Price have fund supermarkets that offer *thousands* of different funds from hundreds of mutual fund companies. the upsides to this approach include (a) consolidated monthly statement showing all of your holdings, (b) consolidated tax statement at the end of the year, (c), ease of moving money between investments and money market funds, (d) comparison tools for "screening" funds, and (e) of course fewer internet passwords to remember! there is really just two downsides to this approach, (a) you favorite fund, or the one that your barber recommended, may not be available within the fund supermarket, and (b) a small percentage of mutual fund companies impose a transaction fee associated with fund shares not bought directly from them. Dodge and Cox, for example, charge a transaction fee to most customers buying through brokerage houses. --- all that said, i favor using the brokerage house method. the paperwork is simpler, the transfer of money is simpler, and you can buy ETF's in the same account. ar-jedi disclaimer: Fidelity customer (brokerage and 401k), T Rowe Price customer (wife's 403b). |