mutual funds!??

[Trav386]

I'm a freshman in college and i've had to take out some student loans to pay for school. They're interest free until I get out of school, but I've managed to save about $1,000 since christmas and I want to put the money in some sort of stock/mutual fund type deal to pay for school. I really dont have much of a clue on what to get. I've heard that a balanced mutual fund would be good, but i'm just wondering what would be the best way to go to maximize my returns so i could pay off as much of my college tuition as I can when I get out of school. Thanks...

 

[Island Son]

AFAIK about 75% of mutual funds underperform the market and soak you in hidden fees. If you're going that route, look for an indexed fund which tracks the overall market; it'll be probably .2% fees instead of 3% fees.
Just my completely unprofessional opinion, i'm an amateur.

 

[Island Son]

here's some background reading about mutual funds, all the basics.

http://www.iwillteachyoutoberich.com/archives/2006/04/all_about_mutua_1.html

 

[flex229]

my favorite fund, Fidelity Contrafund just closed,,so that's a no-go..

maybe look into Fidelity Capital Appreciation or an index fund..

wait till the market pulls back some though...it's overbought at this point...chances are,,if you wait,,you can get in at a better price..

 

[The Red Dragon]

www.vanguard.com has a few indices but I think you need a 3000 minimum...apparently the S&P500 beats out 60-90% of mutual funds and it just tracks the market =/. It compounded at 12-15% since its inception in 1976? Something to look into. Or you can go huntin' on your own , remember that mutual funds are institutions that have laws subject on to them, like max % of a company they can buy and the whole diversification bit. Although...indices are epitomize diversification.

 

[Creepusmaximus]

I'm a freshman in college and i've had to take out some student loans to pay for school. They're interest free until I get out of school, but I've managed to save about $1,000 since christmas and I want to put the money in some sort of stock/mutual fund type deal to pay for school. I really dont have much of a clue on what to get. I've heard that a balanced mutual fund would be good, but i'm just wondering what would be the best way to go to maximize my returns so i could pay off as much of my college tuition as I can when I get out of school. Thanks...

You sure about interest free? Never had a student loan but I thought you just didn't have to start paying them off for a while. Check into Franklin funds.

 

[WhatOkay]

Check your pm.

 

[lartinos]

I'm thinking of going with an indexed fund.

 

[lartinos]

But how liquid are mutual funds. If I decide i want to take my money out six months later are there fees?

 

[chewyxrage]

But how liquid are mutual funds. If I decide i want to take my money out six months later are there fees?

Probably. Plus a tax on any money you earned. Not sure you gain enough in the meantime to make it worth it for 6 months. Try a money market fund if you want to able to get at it quickly...JMHO

 

[trader]

I'm a freshman in college and i've had to take out some student loans to pay for school. They're interest free until I get out of school, but I've managed to save about $1,000 since christmas and I want to put the money in some sort of stock/mutual fund type deal to pay for school. I really dont have much of a clue on what to get. I've heard that a balanced mutual fund would be good, but i'm just wondering what would be the best way to go to maximize my returns so i could pay off as much of my college tuition as I can when I get out of school. Thanks...

I would just open a broker account (etrade, ameritrade, etc) and look into just buying stock with a really good dividend (something that will give you cash flow every 3 months) . This will give you the oppurtunity to maybe give the returns of an employer matching 401K. Dividends are the way to go if you don't need the money for 4 years. Just my 2 cents.