| T.R | Title | User | Personal
Name | Date | Lines |
|---|
| 19.1 | what do you waht your $$$ to do? | SOLVIT::CHEN | | Mon Jan 27 1992 13:03 | 11 |
| My personal opinion is that if you are thinking of putting your money
to help the local economy, you can buy stocks from the local companies.
If your objective is to put your money to work for you and generate
profit from it, you shouldn't put restrictions on your fund managers on
where he/she can put your money into. It's like to ask a tennis player
to win the championship, and yet, he/she has to put a chain on his/her
ankles and pair of hand-cuffs. Personally, I think sector funds are
'chancy'. But than again, there were a few sector funds did very well
last year.
Mike
|
| 19.2 | what I'm looking to do ..... | BUNDY::LONG | | Mon Jan 27 1992 13:44 | 13 |
|
I'm looking to invest in these companies for my own long-term growth.
The reason I'm looking for a mutual fund rather than buying the stocks
directly is that I've only got around 2K to put in this direction. I
don't feel I can get what I want, with any appropriate diversity for this
kind of investment, by buying directly.
-.1 I understand your point about limiting, etc. I just felt that with
the current state of my resources, an m-fund would still be the better way
for me to go.
|
| 19.3 | MF is the way to go... | SOLVIT::CHEN | | Mon Jan 27 1992 14:40 | 11 |
| re: .2
I would go for a good no-load mutual fund. 2K is not enought to build a
diversified stock portfolio by yourself. But, it is enought to get into
some of the top rated no-load funds and you meet the minimum balance so
you don't pay any charges. Money magazine and Kiplinger's magazine have
some good recommendations. However, I would buy a fund for its
performance, not which states it invests in. The key is to pick a good
fund manager and give him/her as much 'freedom' as possible.
Mike
|
| 19.4 | Fidelity may be the answer | CIMNET::NMILLER | Nick Miller | Tue Jan 28 1992 11:21 | 4 |
| Fidelity in fact has a sector fund that tracks small communications
companies (many of which are in MA). It's new and not large enough to
get tracked in the newspaper yet - call Fido for details (I can't think
of the name, but it has "communications" in it).
|
| 19.5 | | SUBSYS::GANESH | Ganesh | Tue Jan 28 1992 15:23 | 13 |
| I would never put any money in a Fidelity sector fund. Not counting
one-time expenses such as the front-end 3% load, the back-end "transfer fee"
and redemption fee, their sector funds have a maximum annual expense
of 2.5% - I believe this is state-mandated - and many of them actually
reach that level of expenditure, perhaps due to their small asset base.
I also find it very puzzling that their portfolio turnover rates are
quite high (I thought the idea was to buy a few companies in the sector
and sit on them).
In any case, call me cheap, but to me 2.5% per year seems a bit
on the high side.
- Ganesh.
|
| 19.6 | how much do you care if you lose that $2K ? | CSSE::NEILSEN | Wally Neilsen-Steinhardt | Tue Jan 28 1992 16:01 | 23 |
| .2>I've only got around 2K to put in this direction
I think you have two good alternatives, neither mentioned here.
LOW RISK: Put this 2K into a no-load money fund. Add $$$ every chance you get.
Use your time to research the industry and play the market on paper. When your
balance is about $10K, start thinking about the alternative below.
HIGH RISK: Research the industry carefully and buy 100 shares of the best
company you can find under $20 per share. Every week or so repeat your
research and decide if it is time to change companies. There is a good
chance you can run your $2K down to $1K this way, but at least you will have
learned a lot more than you ever could in a mutual fund.
As you can probably tell, I don't think much of sector funds. If you know the
industry, you should be picking your own stocks. If you don't, you are
probably better off in a broad-based mutual fund. Otherwise the volatility and
the expenses mentioned in a previous note will kill you.
The only people I can see who ought to use sector funds are those who are sure
they understand the market well enough to predict the directions of different
sectors, but don't know any industry well enough to pick stocks in it.
|
| 19.7 | check WSJ last week | CIVIC::COUTURE | Gary Couture - NH Sales Support | Tue Jan 28 1992 19:20 | 4 |
| Check out this weeks Wall Street Journal...Monday issue or maybe last thurs
or Fri. They showed 5 or so mutual funds that are specializing in small high
tech companies such as cabletron which should bounce back if recession turns
around. I'll chack my copies for specifics.
|