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Investing/Strategies / Retirement Investing
|Subject: Re: Van Kampen Mutual Fund||Date: 10/27/1999 1:37 PM|
|Author: pauleckler||Number: 14851 of 78037|
You should be able to check out the performance history of the Van Kampen Emerging Growth Fund on Morningstar and ValueLine available from Quicken on Excite.com. Compare its historical performance to that of the S&P 500. Check out its load charges and expense ratios.
Much depends on how important the income on this investment will be to your father. Does he have social security or other income to cover his basic living expenses (so this added income buys him some extras), or is he dependent on this income.
The fund you mention appears to be a stock fund investing in new companies. It is good that your father is willing to invest in equities. The risk is that recent performance may not continue consistently in the long term. If other income will cover him when the market is down, fine. If not, he probably should not be 100% in stocks. A portion in fixed income investments to provide funds when the market is down is a standard Foolish recommendation.
If your father has experience with Van Kampen and is satisfied with its performance, it can be OK. Fools would usually choose an S&P Index fund instead if mutual funds are to be used. That is because they outperform about 80% of the managed funds and they tend to be low cost, low expense ratio funds.
You will have to decide for yourself which of these recommendations makes sense in your father's situation. If you have more questions, or need more detai, feel free to ask again.
Best of luck to you.
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