Mutual fund question. which one is better?

Question

vfifx or diaex. I have 30K that i would like to invest in a mutual fund. I'v done my DD But I would like to get someone else opinion. Which one is better over 20-25 years investment.

Vanguard Target Retirement 2050 (VFIFX)

Transam Partners Instl Growth (DIAEX)

if you had to pick from only those two which one would you invest 30K in?

thanks

Answer 1

DIAEX is not diversified. It's a large cap growth fund. It holds no bonds and very little international.

Also, here is the cost:

http://quicktake.morningstar.com/FundNet...

Vanguard's VFIFX has diversification. It holds 10% bonds, stock from all sizes of companies and some foreign (IMO, there should be more foreign.)

Morningstar says:

"Vanguard Target Retirement 2050 is a standout....This fund-of-index-funds boasts several appealing qualities that make it truly best-in-class.

For starters, its portfolio is well-structured. The fund currently invests 90% of its assets in stocks and the remainder in bonds, which is a sensible mix for young investors with a long investment horizon and is comparable to rival 2050 funds. Over time the fund will gradually shift its portfolio mix from stocks to bonds until a few years after its target date when it arrives at the 30% stock, 70% bond split of Vanguard Target Retirement Income VTINX."

Here is the cost:

http://quicktake.morningstar.com/FundNet...

You buy this target retirement fund and all the work is done for you...at a very low cost.

Answer 2

There are MUCH better performers out there. I'm curious to know how you whittled things down to these 2. I really hate "Investment Target" funds because the emphasis is on the portfolio mix instead of performance of the contents, where it should be.

Answer 3

While, I respect Vanguard family of funds the type of fund in which you should invest at your age is a growth fund not a retirement fund.  The retirement fund will be limited on growth potential and heavier weighted to an income and growth balance.  I dont know DIAEX but check it thru Morningstar rating system.  You should have only one fund.  Because you will end up with diversification on top of divsersification.  Good luck with your intvesting future.  Stay upbeat even when things go the other way for your holdings.

Answer 4

DIAEX has expenses of 1.36% and a 12b1 charge of 0.25%

VFIFX has expenses of 0.69% and a 12b1 charge of 0%

The fees are going to hurt you.  Ignore the previous poster.  He missed the part about the Vanguard being a TARGETED retirement fund.