Mutual Funds: anyone have a recommendation?

[PlatinumGold]

I set up a SEPP account, I put a sum of money in it.

Now, i'm wondering if i should put the lump sum in a mutual fund or various stocks?

Or should i put it in several mutual funds.

any ideas on strategies.

also, don't go overboard with comments like "If you have to ask ATOT".

i do my own research, but i'm curious as to how ATOTers feel about it.

 

[Orsorum]

It depends on how much money you're dealing with. If you're dealing with less than $20,000 or so, go with a mutual fund, I'd go with the Vanguard S&P500 index fund. If you're talking about a larger amount of money, a mix of actual stocks may be more appopriate.

What are your criteria for buying stocks? Do you use technical analysis or do you look at fundamentals? What is your time horizon?

 

[PlatinumGold]

orsorum, it's less than 20g's right now, but should be well over 20g's by the end of the year and i plan on adding 15 to 20 k per year.

 

[dirtboy]

If you have time to research and monitor your investments, and you know how to do it, buy stocks. If you want to just invest and not worry, pick a quality mutual fund that has shown long term gain and leave it be.

 

[PlatinumGold]

ya. i like vanguards also.

 

[Orsorum]

*slow whistle* I wish I had that kinda money. Stupid college/law school.

You say you've done some of your own research, I'll share what I use for choosing stocks (all five that I own right now, ).

-consistently good dividends (6% plus)
-good financial shape
-sales growth should be >= than inventory/receivables growth
-ratios
---steady EPS growth
---ROE >= 20%
---buy when trading less than 1.2x share book value
---low P/E ratio compared to industry (VALUE)

I don't always hold to these principles - I bought three stocks before I really did research (Boeing, Sierra Pacific Resources, and Asia Pulp & Paper). Boeing and SRP were trading at their 52-week lows, and I may trade them out now and pay the short-term capital gains tax - neither fit my criteria, SRP is facing some issues with the California energy crisis and Boeing is not the stalwart it once was. Asia P&P is cheap, and I only have ~$160 in it with brokerage fees (for 1,000 shares, :Q), so I don't care too much about losing it: it is not in danger of bankruptcy, so might as well hold it.

I honestly do not know yet what my principles are regarding mutual funds, I have yet to do extensive research on them.

Well, okay, one important criteria - low fees as compared to their peers.

 

[PlatinumGold]

I like vanguard because their fees are very small.

 

[ElFenix]

nothing is anywhere near as consistent as an index fund for long term performance.