What kind of mutual funds should I invest in for long-term gain?

Question

ex. alternative energy..

are there any specific examples?

Answer 1

diversify.............going into a specific fund like alternative

                           energy can be disasterous, this is a sector

                           fund

recommended........NO LOAD........BALANCED.......GROWTH

                                 FUNDS.......LARGE CAP BLEND

go to yahoo financial and morningstar to check out and compare

do your research in advance..........

invest a fixed amount each month

this is known as dollar cost averaging.........

in months when the shares are down you buy more....

when the shares are up you buy fewer shares

Answer 2

7 is correct - diversification is very important.

If you're just starting out, a great place to start is with an S&P 500 Index fund.  Most fund companies have this type of fund, and it makes a great "core" holding - it spreads your investment across the 500 largest companies in the U.S. (think Disney, Coca Cola, GE, Microsoft, etc.).  Once your portfolio grows and your knowledge of investing increases, you can add other funds (like alternative energy, health care, international, real estate, technology, etc.) to complement your core fund.  Remember, though - never put more than 10% of your total portfolio into any one industry.

Also very important - set up an automatic monthly investment, so that you contribute to your account each month.  Fund companies make this very easy to do, and you'll be amazed at how quickly this will make your money grow!

You'll want to invest with a solid fund company - low expenses, good fund selection, and good customer service.  Along these lines, I like Vanguard, T. Rowe Price, and Fidelity.

I hope that helps - good luck!