Because of the economy, is this a good or bad time to invest in mutual funds?

Question

I want something that is a low-risk investment if that's possible.

Answer 1

"Jeff410" said it all.

Answer 2

very bad time to invest anywhere,stay out of all stocks,bonds,money markets,realestate,commodities.the margin calls are going to be called on wall street and th eflood victims are dumping everything in order to live and rebuild

Answer 3

you should stock up on gold

Answer 4

It's always a good time to start investing, if you are investing for the right reasons.  Are you looking to get in and out fast to make a buck, then good luck.  If you are investing for the future then yes it's a good time.  If possible get yourself setup with an auotmatic purchase plan.  what this does is purchase the same $$ value every month.  Over time it really help balance out the cost of the funds.

In terms of Low Risk, you should either look at a Strong Balanced Fund or if you are really really risk adverse then go with a Bond Fund (I recommend the Balance Funds myself).  Just remember to keep a good Asset Allocation and you will do well over the long run.

Answer 5

In a strong market this could meet your low risk tolerance goals.

In today's highly volatile market, you're likely to trend down, and if there's a major hit to the market, you can't exit until after the market closes.

If you're in it for the extreme long haul, you may wish to make several purchases, rather than one, when the market dips.  Going "all in" when we're 15% below the October all-time peak is assuming we won't go down further - for my money, that's a bad assumption.

Answer 6

Mutual funds is always a good choice for the long run. They have done good in the past 100 years.

Answer 7

It doesnt matter what the economy is doing.  What matters is your personal situation.  If you have the time horizon and the risk tolerance the sooner you start the better.  The economy goes through cycles.  Mutual funds are a long term investment.  Dont invest for the long term, with a short term view.

Answer 8

Historically, recessions are a great time to begin investing in the equity markets. So yes, mutual funds should be a good idea as long as they are well diversified.

It could also take some time for the funds to rebound.