mutual funds

Anybody have a mutual fund recommendation? I have some money I need to set aside for a few years ...

General index type stock funds, such as one based on the S&P 500, are the safest bet if you're investing in stocks. I think Vanguard has a low cost one. Of course stocks flucuate quite a bit short term (less than 10 yrs). Allocate more of your portfolio to stock mutual funds the longer term your time horizon is, and vice versa...

A lot depends on your risk tolerance too Paul. How upset would you be if the money lost value or stayed the same ...
Do you have any required rate of return on it? What is the money for?
The amount might have some factor too - larger amounts can be spread out more while smaller amounts will, obviuosly, have to concentrated.
Dave

I was going to just drop it in a savings account for three years. I think I'll leave half in savings and put half in a mutual fund. Cuz losing 35% to 40% I could live with. It just seems that the market is about to take off, so it may be wise to shift it into something that can do some good.

Instead of a savings acount you can earn more in a CD (not much more, but more than a savings and it is just as safe there).
As for the rest if you're not averse to the risk then go for a growth fund that could potentially take off (or drop off the planet too

). You can even find some that specialize in specific sectors (tech, bio-tech, etc). I'm not into it enough to have any specific reccomendations though, sorry.
Dave

A 3-4 year time horizon is usually too risky to invest entirely in stocks and rely on the invested amount to appreciate. But since you said you could live with a 40% drop in value, then why not put it all in a stock mutual fund? I'd say the odds of the stock market dropping 40% in the next 3-4 years are small.
So since you can live with a worst case scenario (40% drop in the market is a worst case realistically) , and the odds of a worst case are small, go for option that gives you the near maximum upside potential. Put it all in stocks, but diversify. Like I said before, an index fund is the safest bet if you have an all stock portfolio. If you want more risk and more potential for gain, go for a Growth or Aggressive Growth stock mutual fund. Fidelity and Vanguard are two respected mutual fund companies that offer a lot options. Also Charles Schwab (minimum $20,000).

i bought a couple cd's just before the rates started going down last year... my initial rate was 6.25%, but with a 6-month rollover, they just went down to 1.89% ! can you believe that? i would stay AWAY from the cd's for now.
i have a Roth IRA with Aim Funds, but this only works if you keep the money in there for a while. i started 6 years ago ($2000 per year) and i do not plan on taking it out until i am retired (about 40 years total).
if you do not mind your money being tied-up, real estate is a very good investment right now. i work in a commercial real estate company here in Georgia, and i see a lot of investors buying land while the interest rates are down... but there is no guarantee that you will be able to sell the land quickly if you need the money (unless you sell it for less than it is worth).
[ March 08, 2002: Message edited by: Greg Harris ]

Paul,
If you are looking for a good fund, look into Dodge and Cox Funds. Also, look into bond funds as an alternative to CDs or savings accounts. Some money market accounts may provide a slightly higher return then your savings accounts. Bond funds also have less risk then stock funds.
The Vangaurd funds are good. They have a low expense ratio for their index funds. I also recommend investing in no-load funds. Also, keep an eye on your funds and track their performance against similar funds.
When you start to invest in mutual funds and stocks, you can never have too much information.
Good luck!!
-Bob

I volunteer to be a mutual fund! As for the risks involved...no guarantees what so ever.
Contact me if you're interested.
HTH, TIA, Erik Dark

Anybody have any good online resources where one can learn more about all of these goodies (stocks, bonds, CDs, IRA's, etc.)?
Thanks,
Corey

Erik,
Would be this in the same fund family as Dogberts' funds.