What is the best mutual fund to invest in?

Jul 24, 2007 22 Replies

Yes. You can cut taxes by buying a total market index fund and total bond bund in those proportions. Index funds have minimal selling (taxed). You just put your periodic contribution in whichever fundi s falling behind to maintain the balance.

Actually, I'd generally recommend starting with Personal Finance for Dummies by Eric Tyson. The beginning investor usually needs to assess his bigger picture first and that's what that book's about. It's also got excellent sections on mutual funds, finding a financial planner if necessary, etc.

mscsrrr.com , as Sandra L. pointed out at one point, start by getting a handle on the meaning of "asset allocation." See the links at

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for some quick and interactive and so kinda fun tools to introduce you to this concept. Note that the tools assume one is investing for the long run. Next you need to start asking "Why allocate?" and "Why invest for the long run?" Ask here or google or both. Certainly lurk here for the coming months, since your type of question comes up here a lot. No stocks for you for at least a year. During this year, keep reading. I like joetaxpayer's reading list at
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. A lot of these books you can skim or read from somewhat at random at night after work.

In the future, giving your age, debts, current income and job prospects, to name a few parameters, would be helpful. Next people will want to know if you have a 401(k) through your employer, have started an IRA, are married, have kids, have insurance, etc. These are important issues to explore so as to achieve financial security and so peace of mind.

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