Can somebody analyse my portfolio so that i cud invest in MFs?

Question

I am 26yrs old,single (will be married in a year) and have dependent parents and sibling.I have an been working for 2yrs and have an income of 14k per month,I manage to save abt 3-5k per month.I would like to invest these funds in Mutual funds.Pls advice.I would like to participate with minimum risk options.

Thanks in advance to all who share their views.

Answer 1

At 26, you have about 40 years until you reach retirement age, so the most appropriate place to invest would probably be fairly aggressive growth funds.  These will give you the highest potential return, and your time horizon eliminates any real "risk".  If you think about it, the riskiest option for someone with a 40-year horizon is to put their $10,000 in a nice safe fixed Bond fund delivering a guaranteed 5% return; in 40 years it will grow to be only $70,400.  If you put it in a "high-risk" growth fund, some years you may actually lose a little (or a lot), but your overall average long-term return will be around 10-12%, growing your $10,000 to between $450,000 and $900,000.  When you reach 45-50 years old, THEN it makes sense to start to shift to "safer" funds to preserve what ....

Best wishes!

Answer 2

First of all I agree with most responses here posted and personally believe that if you are new to the idea of investing and looking to enter you must start extremely conservative! There are various avenues you may persue thats doinging very well for most who decided to step into fix-income or defensive portfolios (alternative Ideas). Your money can be liquid along with a comfortable gain. ALong with being FDIC insured!!! I could point you in the right direction should you feel so compelled to learn more!!! [e-mail]

Answer 3

d**n, if you make $14k per month, saving money shouldn't be that big of a problem.

So what do you mean analyse your portfolio... you don't have a portfolio. Just deposit money into your investments every month when you have it  left over, that will be the easiest and cause it to grow faster

Answer 4

Getting married in a year, huh?  You will, I expect, want to buy a house sometime afterwards or do you currently own a house?  You should have about 20k to 30k saved up for a down payment if you do not currently own a house. It should be an excellent time to buy by then. But do not go overboard like all of those McMansion buyers did during 2003-2006 and buy a house that is too big and too expensive.

You have a great monthly income, better than about 90% of the population.  I am sort of surprised you have not managed to save more, but since you are single it is probably going for taxes.  A mortgage and property taxes will help out in that department.

You do not have a portfolio to analyze, at least not one that is apparent.  There are 3 mutual fund companies with some excellent mutual funds--Fidelity, T Rowe Price, and Vanguard.  A portion most would agree should be allocated to an index fund.  All 3 have several to choose from.  A popular one is the S&P index fund. Low expense ratio and low tax bite. Maybe 30% into such a fund.  The main problem with the S&P 500 fund is it is all domestic, so you also need foreign exposure.  Vanguard has a wide variety of international index funds and other international to choose from 20% in one or more of them. 25% in a bond fund.  Your income is high enough that you may want to select a muni fund.  All 3 have several to choose from. 25% in a money market fund.  

There you are.