Are global funds to risky for retirement investing? The reason I'm asking is because I found the following two funds on a website called:"Market Watch by Dow Jones" listed under the "top 25 global funds".The 1-year returns seem phenomenonal. DPCRX Dreyfus Prem Gr Ch;R 40.96 53.40% OBCHX Oberweis:China Opptys 22.54 46.74%
You can get very burned by chasing last year's hot fund.OFten all the good news is out in that fund.....One year, one fund outperforms...the next year another....Don't be fooled into thinking one manager is going to be lucky year after year....sometimes it is just one lucky stock that gives all that performance.t.
I would rather take a 15% return year in and year out than a high flyer. That said, I do have a small portion, @ 10% of my funds invested in specific sector funds, such as an India fund and a Mediterranean fund. In addition, I have some international funds that are specifically NON US companies, both large and small cap. It's prudent to have exposure worldwide.MZ4
OBCHX is an excellent fund. For a bit more diversification in the emerging markets area, consider JAOSX, UMEMX, and LZOEX. There are also some regional or single country funds, such as EUROX and MINDX.Just watch and if the fund begins to tank, dump it. Watch the charts.Of course, if you want to trade, consider UUPIX and UNPIX. I have, made a bit of money in those two, but they bear close watching.
From Yahoo! Finance here's the Annual Total Return (%) for the same category as OBCHX Year Category 2006 35.372005 21.282004 13.07 2003 54.22 2002 -8.95 2001 -1.48 2000 -24.58 1999 73.30 1998 -5.21 1997 -30.09 The last 4 years the category has had great returns, but canit make it 5 years in a row?Hohum
Year Category 2006 35.372005 21.282004 13.07 2003 54.22 2002 -8.95 2001 -1.48 2000 -24.58 1999 73.30 1998 -5.21 1997 -30.09
Are global funds to risky for retirement investing?As to your question - no more so that any international fund. "Global" simply means that that it is an international investment that includes some domestic stock. "International" means no domestic stock. As such, Global funds can be more conservative than a straight international fund.I would not put all my retirement money in a global fund but 10-40% in a well diversified global fund would not be a bad option. Just make sure it is a broad-based and well diversified fund - many have too much emerging markets.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Anal