View Single Post
  #2  
Old 07-16-2007, 04:08 PM
Tupacia Tupacia is offline
Senior Member
 
Join Date: Mar 2006
Location: Money Long Like Arms on Alonzo Mourning
Posts: 753
Default Re: I am going to invest $50,000 in...

If you're already sold on going the mutual fund route (as opposed to say index funds), the most important thing to look for is a low expense ratio. Far more important than the individual funds you pick will be your asset allocation (how much to put in an aggressive small-cap fund versus an international fund). Based on your age, income, and other goals, you should be able to find plenty of suggested asset allocations. Since you're probably young and have enough money from poker, I would recommend the most aggressive allocation (100% equity) and then determine your sector and market-cap weightings from there.

I would also recommend you take a look at index/passive investing, and throw a large portion of your money in Vanguard funds that track the S&P 500, a fund that tracks small caps, and a fund that is international in nature.

Also, don't put too much stock in past performance in mutual funds. Managers change frequently, and the influx of money that flows into a high-performance fund is often a death knell as they can't find enough good investment ideas to dispense of that capital. There's a much higher correlation between low fees and high performance than between high past performance and future high performance.

Hope that was helpful. If you give the forum more information about your goals, income, and age, you could get more specific advice.
Reply With Quote