Is this a good mutual fund?

[PLATO]

Originally posted by DanS
The fund's expense ratio is 1.16%, which is pretty high. Over the course of your investing life, that would take a huge chunk of change from your wallet to manage your money. As a small investor, expenses are your enemy.

Index funds are a great way to invest, since they aren't actively managed and thus have low expenses. You're young, so you could take on more risk by getting exposure to the mid-caps, small-caps, and global funds. F.e., IWM is a composite based off the Russell 2000 (small-cap) index. 0.20% expense ratio.

IMO, this isn't a great time to be investing in the stock market.

Good luck!

Given a long timeline on the investments I would agree with this.

As far as if this is a good time for the market or not, it depends on what sectors you are looking at. If I had cash, I would buy all the Citi I could get my hands on. It may be an underperformer for a while, but Rubin guaranteed the dividend and long term it will be a powerhouse (and Pandit just may be Wall Street's new genius CEO as well).

Of course, that is why I am for the inexperienced investor working in a managed fund. Still, if you have a long time, then the lower expenses probably would win out in the end by a large measure.

[Apocalypse]

Ugh, so what is a good fund then?

[Japher]

Here;

USAA's S&P 500 Fund with a 0.19% expense ratio, $3000 minimum investment.

USSPX

[Apocalypse]

So is it ok to buy now?

[DanS]

Ya buy yer stocks and ya take yer chances.

[Apocalypse]

What if I bought USNQX, which is tied to the NASDAQ?

It has a ratio of .80% though.

Or is something like 3000 in USSPX and 1000 in USNQX good?

[Apocalypse]

Also USMIX has 4 stars while the other two have just 3 stars. Does that make it better?

[Japher]

USMIX has, as it's top 5 investments, an S&P Index, Berkshire Hathaway, Russell Index, Genentech, and Kraft

I use to work for Genentech (DNA) and am a long time owner of this stock, and have been very happy. KFT is on the down swing and has been selling off brands, which, IMO, is a good thing. Other than that USMIX is mostly other funds. Seems odd to me to buy for that.

I would buy either USMIX or USSPIX, which every you are more comfortable with. M* ratings are BS IMO but that is neither here nor there, and I think both will do fine over the next 40 years, or whatever their life is. Things is, I wouldn't buy both, they are both pretty much the same thing.

If you want to split your investment then I would, after one of two above, I would get a QQQ index (that's Nasdaq) which will give you exposure to technology, or I would buy a pharma/biotech fund (I'm biased), or individual stocks.

DNA is on sale right now, as is Kraft. I bet many funds will be loading up on these stock in the next couple years. These are two solid stocks. If you want a discount holdings company, like Bershire, look at Blackstone (BX). BX is young, and I think that's the only reason they are priced where they are, that and they are still semi-private. Still, with the billions in capital they get and the fact that savvy money makers are behind that dough it should be good. Otherwise, buy what Berkshire has instead of their over priced fund (read; expensive). Coke and Geicko, always good buys.

[Apocalypse]

USNQX is a QQQ fund?

[Apocalypse]

USNQX is 9% biotech, or were you talking more biotech heavy?

[Japher]

It looks like the Nasdaq-100, but it's still a mutual fund

Also, look at Powerhouse QQQ, symbol QQQQ, a true ETF with a .2% expense cap

[Japher]

USNQX is 9% biotech, or were you talking more biotech heavy?

Souly biotech

[Apocalypse]

Alright, thanks for the advice. I maxed out the Roth IRA for this year. I will look into the biotech suggestions for investing in general. The 5% I get from money markets isn't too bad right now and considering I might be buying a new car anytime I am not sure I want to invest that money yet.