The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/chachinga-you-need-to-do-some-careful-research-11429710.aspx

Subject:  Re: Van Kampen Mutual Fund Date:  10/27/1999  4:52 PM
Author:  GrayWulff Number:  14867 of 76418

chachinga,

You need to do some careful research, but here are some guiding pricipals:

1) Don't pay any loads. Front loads, back loads, whatever. They are sales commissions and they don't add to performance in any way. Even if you choose a managed fund, pick a no-load fund.

2) Look out for 12-b1 fees. They are advertising fees, they don't enhance performance either.

3) Compare everything to VFINX, Vanguard's flagship S&P500 Index fund. A few funds outperform VFINX for a while, but not many that have done so for a decade. It's a great benchmark.

4) Read John Bogel's COMMON SENSE IN MUTUAL FUNDS. Get it at your local library. It's easy reading, but has real depth too.

Van Kampen Emerging Growth A is a front loaded fund that has done well for the last 5 years. It probably doesn't make sense to sell what you already own, but I sure wouldn't pay a commission to get it. If you want comparable no-load suggestions, drop by the mutual fund boards.

Cheers,
GW
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us