How much percentage do mutual funds make?

Question

if i for instance invested 20,000 in mutual funds how much money would i make on that in a year. Also who do i speak to about getting a mutual fund thanks

Answer 1

It varies.  Mutual funds do not have guaranteed returns like a bank savings account.  They can have negative returns at times.

Answer 2

All the above answers are correct.  Mutual fund returns will vary each year, and some years (about 1 out of every 3, on average) they will lose money.  That is why mutual funds are best used as a long-term (5 or more years) investment.

Also, there are different types of mutual funds:

- Stock funds are the most common.  These have the highest historical long-term returns (and also the highest short-term risk).  Stock funds have historically averaged about 9-10% return per year.

- Bond funds are a bit more conservative.  Their fluctuation (risk) is not as great, but neither are their potential returns.  Historically bond funds have returned about 5-6% per year, on average.

- Money market funds are the safest, and slowest-growing funds available.  They are not guaranteed, but no money market fund has ever lost money.  Average returns have historically been in the 3-4% range.

You can invest in mutual funds in one of two ways: you can go to a stock broker/investment advisor, who will charge you in some way (probably a sales commission, or "load," taken as a percentage of your investment), or you can invest directly with the mutual fund company itself ("no load" funds).  If you go this route, I would recommend choosing a fund company that has low expenses, good fund selection, and good customer service.  Along these lines, my favorites are Vanguard (www.vanguard.com), T. Rowe Price (www.troweprice.com), and Fidelity (www.fidelity.com).

I hope that helps.  Good luck!

Answer 3

Returns on Mutual Fund investment are not guaranteed as it depends on market conditions. I f you are lucky to have invested in a rising market, you will definitely make money but how much nobody can quantify.  There are many mutual fund advisers on line. You will get all information and advise free from them.

Answer 4

it all depends on what the mutual fund invests in, which dictates the risk/return profile.

last year, you could have made 80% if you invested in the CGM Focus fund, for instance.  Or, you could have lost 80% with the American Heritage Growth fund.

beyond that, if you want stable returns, you can buy something like a bond fund.  or, if you're willing to take risk, you could try a small cap growth fund.

but you should really talk to an investment advisor, because it sounds like you don't even have the basic foundation of stock market knowledge.