Emerging Growth Funds
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Joanne Said:
I'm about to invest in the following two mutual funds in India and want advice.?We Answered:
Here is a very good article I just read on Mutual Funds that you should read.Sonia Said:
Should I invest on emerging market?We Answered:
If this is process of elimination, I'd get rid of the Russell Small Cap Index Fund, Especially for something long-term like a retirement fund. You'd be investing in small companies some of which are riddled with debt hoping to make some speculative breakthrough.For an emerging market, a fund relating to the Chinese markets might be smart considering the level of its economic growth.
My suggestion; Include
A US large cap fund
International fund
Chinese fund
Diversify into at least 1 other asset class other than stocks.
Vivian Said:
How do I start to invest in IRA? What type of funds should I look into? I am a college student.?We Answered:
Open a Roth IRA account with a discount brokerage firms such as Charles Schwab or TDAmeritrade which has "brick and motar" branches, not just an online only company. Start putting your money in the account up to the maximum you are allowed per year. It's $5,000 max this year for your age. The max amount increases each year. Within the Roth IRA, you can trade in stocks, mutual funds, ETF's, bonds and other investment vehicles such as options. When you sell for profit or dividend received, you are not taxes until you begin to withdraw from the account. By a very, very remote chance, you file a personal bankdrupsy, no creditors can touch your retirement money.Go to www.irs.gov and obtain a publication describing what you can and cannot do and things to keep in mind about Roth IRA.
I saw Suze Orman, television financial advisor was saying in one of her seminar sessions that if you, at your age, begin to put into Roth IRA $100 per month without missing even a month, you will be looking at $1 million at the age 65. I don't know how she calculated to arrive at this figure, but the point is that you invest regularly into Roth IRA and invest wisely within the IRA, you will be assured of substantial funds at the time of retirement.
I applaud you for thinking and acting on it for the future at your age. Good luck!
Julio Said:
How much to invest in foreign/emerging markets?We Answered:
24% sounds like a pretty good allocation. Most people probably wouldn't even go that high, but I think it's a good time to look at some foreign markets, with the economy being so rotten in the USA. Australia, for example, has a government budget surplus, never went through a recession, and has tons of natural resources that it's selling to emerging economies like China, which rely on imports to fuel its growing economy.My advice (and I'm not a financial planner, just an average investor, so take it with a grain of salt) would be to stick with large caps in emerging markets, since those markets are prone to more vulnerability; and if you want to try some small caps, buy them in foreign established markets with less risk.
Good luck!
Theodore Said:
What should I be investing into my 401K and what are these options?We Answered:
You're young..time to be aggressive. You may take a hit for awhile but if you put at least 25% (each) in the two " international" funds ( emerging and global)..you will be cooking in the next few years. As for the other 50%...go " value" or " conservative allocation". In the next few months, as you wait for your first " quarterly report", get into reading a little about investing and funds...and if need be, be ready to make changes ... you can find beginners' info on finance/yahoo, or moneycentral/msn.P.S. Or you can just look back at answers from lots and lots of questions here that are similar to yours...you'll probably get a few good answers here and there.
Rita Said:
What are some good mutual funds which cover the emerging Chinese market?We Answered:
First of all, since you'll be focusing on a single country (and an unstable one at that), you can forget about "mid-level risk" - all funds focusing on China (or even just on Asia) will have VERY high volatility. Therefore, you should not put more than 10% of your portfolio in such a fund.That said, there is some good potential there in the long-run. As far as no-load funds, the two best out there are probably Fidelity's China fund (FHKCX), and T. Rowe Price's New Asia fund (PRASX - currently investing just under 50% in China, the rest in other Asian countries).
The good news is that both funds are down considerably YTD, so you'll be getting in much cheaper than you would have in January (there's still plenty of short-term downside risk, though).
I hope that helps. Good luck!