Let me first say I know very little about trends in world markets or really anything about economics in general.
I’m 21, just started my first mutual funds through my bank. I’m using American Funds. The two funds I have right now are American Balanced Fund (U.S.) and Capital World Growth & Income (Europe). I’m now planning for next year (May/June) when I plan to put more money in my existing funds and open one more (a growth fund) just so I can be diversified.
So here are my candidates:
Euro-Pacific Fund: Heard this was my best choice, the asian telcom markets are exploding
The New Economy Fund: Lots of tech, mostly U.S. software/telcom
The New World Fund: Very broad investments from Mexico to India, lots of banks and oil/gas, investment in some developing companies
Here’s a page with info on these funds and more:
http://www.americanfunds.com/funds/returns/alphabetically.htm
Thanks for your help! This is money I won’t see til I retire so I’m looking for long term.
kokopell
December 15, 2009 at 9:55 am
When you buy a mutual fund you are buying the fund family’s research. Since all funds in the family use the same research base it is not unusual to have different funds own the same stocks. This is true for American Funds.
Also, when you buy a mutual fund as opposed to an index fund you are buying active management. So don’t look at the holdings and assume they’ll stay the same. An active manager will go where he or she can get the best return-for-risk, within the limits set by the prospectus (but most are written quite broadly these days).
For long-term, foreign investing, Asia makes the most sense. Why not consider a fund like Matthews Asian Technology (MATFX)? Or T. Rowe Price New Asia (PRASX)? American Funds are great funds but given your age — and assuming your ability to keep the funds invested — you can be more aggressive now.