Risky but reasonable funds?

behaviorkeltonNovember 11, 2007

Given the current market conditions, what are some interesting ideas for investing money that has a high return potential, but can be volatile?

I am interested in a mutual fund for this purpose.

International emerging markets?

small cap?

a specific sector?


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You might want to check these articles before making a decision. The 'word' on the street, is to buy ETF'S instead.

'Sell all your mutual funds!' (Yes, all!)
By Paul B. Farrell

Mutual funds are for losers (Page 1 of 4)
Author Phil Town made his fortune by concentrating on good businesses selling at a big discount, and he has the audacity to believe that anyone can beat the ...
www.bankrate.com/cbsmw/news/Financial_Literacy/Oct_07_focused_investing_a1.asp?caret=66d -

    Bookmark   November 12, 2007 at 1:03PM
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ETF's are the way to go vs a mutual fund IMO. You get all the benefit of mutual fund without the costs. A mutual fund is like public company CEO compensation...they get paid way too much whether they make or lose a ton of money.

    Bookmark   November 12, 2007 at 3:12PM
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Should have bought Canadian oil stocks, 4 years ago.

When U.S. 65 cents bought Cdn$1.00.

Kept them through appreciation over the past 4 years.

Now repatriate them (if you think that a good idea).

Each Cdn$1.00 buys US$1.03.

I think JNJ has increased div. annually through the last 40 years or so.

ole joyful

    Bookmark   November 13, 2007 at 3:07AM
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I'm excellent at buying at the wrong time... I bought into the market at near it's peak ('99-2000), and bought a house at the end of the real estate peak! (Luckily, I bought a rather inexpensive house...so hopefully, I won't suffer too much)

Regarding ETFs:
Don't they have operating expenses, too? I seem to remember seeing management fees listed under ETFs that are no different than the related mutual fund.
Of course, you have to pay every time you buy.

On the other hand, there are mutual funds that have low expenses and do not have a fee for buying them. Most brokerages have certain mutual funds that charge nothing for the initial purchase nor do they charge for subsequent purchases into the fund.

On another note:
I am having trouble finding specific information on some funds and ETFs.
For example: Some funds say that they invest 70% domestic and 30% international... and while they usually describe how the domestic stocks are invested (giant, large), they don't tell you how the international side is distributed.

Specifically, I like to know how much is invested in developed markets as opposed to emerging.

Is there a web site that does a better job of it?

BTW, Vanguard is one of the few companies that makes it easy to determine.

    Bookmark   November 13, 2007 at 9:34AM
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The best thing about ETF's is they trade like stocks. You can get in and out in a day. You also do not suffer the tax consequences when they throw off large gains, like a mutual fund. Mutual funds have fees either on the front or back end that will get you. Assuming since you mentioned the cost of buying ETF's that you are with a full service broker, you need to ask them about a trading account. Most of them charge a flat fee for unlimited trades. When I was with Morgan Stanley they charged 1/4% of total assets in the account each quarter or $250. If you buy something you want to hold for a long time, you just have it journaled to a holding account and avoid the quarterly fee. The other option is trade through a discount brokerage and pay the low fee per transaction they charge.

I put a few links in here that you can use to get more information on them or look at their holdings. Yahoo also has an ok ETF page. If you are with a major brokerage they probably have an ETF center as well.


Here is a link that might be useful: Link

    Bookmark   November 13, 2007 at 10:39AM
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