Is CGMFX worth the $50 transaction fee? Or should I buy PSPFX?

Question

I have $1000 in an ira and I was looking at mutual funds to put into the account. I wanted to buy CGFMX but it has a $50 transaction fee. Since I have so little money to invest, should I buy a mutual fund that doesn't have a transaction fee? I was looking at PSPFX which doesn't have a fee, but I have been told that I should not invest in natural resources. What are your thoughts on which fund I should invest in?

Answer 1

I've been a Ken Heebner guy for awhile... BUT...because of your question I just ran comparison performance charts...they are identical...and I MEAN identical.... Their holdings are different...but the charts are soooo close!

I was also in U.S.Global's Eastern European fund...and THAT did very well.... and I really don't see a problem being " heavy" in nat resources... energy and the raw materials for growth...sounds solid to me..( okay, may be shaky right now, but you're talking about the " bricks and mortar" of a growing world...)

I'd say go with the PSPFX, if you can...U.S.Global has some high minimum initial purchase points...but maybe not for IRAs.

Good luck.

P.S. Or just get into the ETF in metals/ mining XME and energy XLE and/or XLB...materials.( as a matter of fact..XLB is probably your best bet...pricewise )

Answer 2

GO for mutual funds because you have too little to invest. Try forex if you want. It can be done with a smalll investment.

Answer 3

Consider yourself lucky the fee is only 50. Ken Heebner is the best fund manager on earth - bar none.  Years from now you'll be amazed how much money Ken earned for you.