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Roth IRA Invested into this mutual fund

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slasher
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Roth IRA Invested into this mutual fund  Reply with quote  

What do you guys think about this fund?

https://www.google.com/finance?q=MUTF:VGHCX
Post Wed Feb 27, 2013 4:30 pm
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coaster
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Below the price there's a reference to "Morningstar rating". This firm has been rating stocks and funds for decades and is the acknowledged expert. You can find more information about your investment on their web site. You'll need to sign up for at least the free-level account to access this information.

~Tim~
Post Wed Feb 27, 2013 5:20 pm
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oldguy
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http://finance.yahoo.com/echarts?s=VGHCX+Interactive#symbol=vghcx;range=20030225,20130225;compare=^gspc;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

The 10-year chart, against the SP500 'compare' chart shows almost tracking the SP500 until early 2012, then the SP500 pulls away.

I tend to avoid sector funds - they carry the risk of the generic market plus the risk of the sector - and IMO you don't get compensated for that extra risk. So I like the market index better - and the expense ratio is cheaper. Very Happy

But who is to know? Heathcare could go bad because of the obama central planning, lack of free market competition. Or 20 years from now we could have a completely different healthcare system where companies floursish.
Post Wed Feb 27, 2013 6:07 pm
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slasher
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quote:
Originally posted by oldguy
http://finance.yahoo.com/echarts?s=VGHCX+Interactive#symbol=vghcx;range=20030225,20130225;compare=^gspc;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

The 10-year chart, against the SP500 'compare' chart shows almost tracking the SP500 until early 2012, then the SP500 pulls away.

I tend to avoid sector funds - they carry the risk of the generic market plus the risk of the sector - and IMO you don't get compensated for that extra risk. So I like the market index better - and the expense ratio is cheaper. Very Happy

But who is to know? Heathcare could go bad because of the obama central planning, lack of free market competition. Or 20 years from now we could have a completely different healthcare system where companies floursish.

I was also considering diving into a index fund. I also have an REIT from vanguard.

I am still learning the hang of this all but I figured its better to jump in and make some money while I am still studying at least!

Good points though!

I hope to learn a lot from you oldguy.
Post Wed Feb 27, 2013 7:00 pm
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coaster
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quote:
Originally posted by slasher
....I figured its better to jump in and make some money while I am still studying at least!

Just so long as you realize you could also be "jumping in" to lose some money, as well. When you jump without looking ... or understanding ... then you're gambling, not investing.

~Tim~
Post Thu Feb 28, 2013 12:07 am
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slasher
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quote:
Originally posted by coaster
quote:
Originally posted by slasher
....I figured its better to jump in and make some money while I am still studying at least!

Just so long as you realize you could also be "jumping in" to lose some money, as well. When you jump without looking ... or understanding ... then you're gambling, not investing.

That is a given but with investment I take the longterm view of things. Even if something happens the markets will eventually recover and since I am young I don't need as much liquidity in my money. I have a 1,000 dollar emergency fund and no credit card debt. I have savings accounts filled with money for various thinks like vacations and even starting to save some money for a 529 for my future kids. I am trying to get a jump on life but I have learned a lot pretty quick. I forgot to mention I am a finance major so I know the basics and a bit more than the average person. I am just inexperienced....an investment virgin Laughing
Post Thu Feb 28, 2013 1:32 am
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coaster
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quote:
Originally posted by slasher
I forgot to mention I am a finance major so I know the basics and a bit more than the average person.

Well, that does put a bit of a different spin on things, but probably not in quite the way you think it might. IMO, persons who come to the investment table with a certain level of "financial book knowledge", actually come with a handicap. They often come thinking they know certain things because they've already been taught those things, and they have the credentials to prove it. But things out in the real world are as they are, not as they are taught in the classroom. Keep your eyes, ears, and mind open, and be prepared to learn as you go, and you'll do fine, handicap or not. Cool

~Tim~
Post Thu Feb 28, 2013 7:35 am
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