I'm restricted to Fidelity funds because of the nature of my 403(b) plan. I've about 150 mutual funds, and about 100 bonds/blends to pick from. Right now I only have a little over $3,000 to move out of the default money market account. Taking pure Foolish advice as given in the Foolish Guide to Investing I would put 100% in FUSEX (Fid. Spartan US EQ Index) 'cos of the low expenses and the long term, more or less guarranteed growth. However, I see many of you don't subscribe to that philosophy and actively pursue high performance funds, more or less regardless of fees. And I've learned,from postings here, that high turnover is irrelevant from a "hidden cost" perspective when the money is all part of a tax deferred account. Therefore, I'm thinking of putting 50% in FUSEX then splitting the remainder between three of the following FDCPX (Fid. Select Computers) FSDCX (Fid. Select Electronics) FSCSX (Fid. Select Software) FSPTX (Fid. Select Technology) FDEGX (Fid. Aggressive Growth) All of which have +70% one year growth and +20% ten year growth. But Fool's supposedly don't pick based on past performance they pick on the soundness of the investment - I can't seem to figure how you do this with mutual funds (apart from the assessments at MorningStar and FundAlarm which I've read for all of them and they seem, overall "good" to "very good"). So I'm asking three questions. 1) With just $3,000 to invest should I be concerned about fees ? I.e. Should I just stick with the index fund ? 2) What do you think of the five other funds I picked ? Are they recognized by the "investment community" as high quality funds with good management teams, sort of like, I guess, Janus is. Can I do better than them ? 3) Is going with three of them a better plan than, say, just one, seeing as funds in themselves are highly diversified already. Looking forward to hearing what you think. I have been very impressed with how helpful and educational the Fool environment is. Thanks, in advance, Dr. C
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