Customer Reviews

The Complete Idiot's Guide to Making Money with Mutual Funds (3rd Edition)

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Excellent insight into the hot topics such as cost average, balance average, rebalancing between stocks & bonds & so on. Just pick the mutual fund, keep adding the money monthly & follow the authors recommendations. I highly recommend this book for patient investors who has 20 to 30 years to stash away his money to grow.

Excellent insight into the hot topics such as cost average, balance average, rebalancing between stocks & bonds & so on. Just pick the mutual fund, keep adding the money monthly & follow the authors recommendations. I highly recommend this book for patient investors who has 20 to 30 years to stash away his money to grow.

First of all with the exception of your 401k I believe a good investor should be putting at least 50% of their money in individual stocks as opposed to mutual funds. One of the reasons for this is that by basically doing nothing a investing in just an index fund ( the most basic mutual fund as far as how it works) return an average of about 15% per year over the last half century. The typical mutual fund does not beat that return, plus you have to pay the management fees( or loads if you are unenlightened enough to buy a loan fund) which can run about 2% of your total return.

This book goes over all the types of funds and how to pick winners. It also informs the reader how to watch out for funds that are heading for a fall such as recent management changes. As well as indirectly helping turn you on to a couple good stocks, as components of mutual funds.

My advice is to keep most of your money in stocks and maybye put 20% in a very good balanced fund. It is also worth noting that on yahoo you can look up the components of the top funds to see what stocks they are investing in. Obviously that is a way to look for some stock picks. Obviously that is not the only factor to consider but i have gotten a couple good picks off this method and got a 22% return in a 4 month period of general motors using that method