Safe Mutual Funds

lamchau · #1 02-25-2006, 07:05 AM

May someone tell me where I can look for mutual funds that protect insure our initial principal? I do not mind if it is slow growing, as long as it beats the rates of saving accounts!

Does anyone has something they would like to recommend?

Thanks a lot.

Brainwalter · #2 02-25-2006, 07:46 AM

Cmon, Gambool.

Recliner · #3 02-25-2006, 02:10 PM

If you are very risk adverse a bond fund would likely be a better choice. Though I believe the yield curves are inverted right now, and I'm not sure what the yields are on investment grade bonds are, so that might be of limited use.

Any time you get involved with equities you are going to be taking on risk. If you are not going to need this money in 7+ years you should seek to find better returns.

HSBC, ING, and Emigrant Direct may be good short term options as I believe they are currently offering 4.8/4.75/4.25% respectively.

Going to morning star and using their ETF or Fund selector and looking under 'large value' will show you ETFs or Mutual Funds that have a low amount of risk.

MatthewRyan · #4 02-25-2006, 08:56 PM

If you're looking for one fund, you should lookaround at balanced funds (funds with stocks and bonds). Both Vangaurd and Fidelity offer these.

rdh009 · #5 02-26-2006, 12:43 AM

Super-safe short term investment are government I-Bonds. Minimum holding period is 1 year, and the only early redemption penalty is 1 qtr (90 days) of interest if before 5 years. I think I’m going to plow my tax return into these bad boys. Current rate is 6.73%. Just a thought.

Treasury Direct