Expert: Paul Henneman - 12/27/2007

Question
CAN YOU TELL ME, WHICH MUTUAL FUNDS IS GOOG TO INVEST IN.

Answer
Thank you for your question!
  This is a difficult question to answer, mainly because every investor is different. The best mutual fund to invest in will vary depending on things like how much risk you are willing to take, how long you plan on leaving the investment to grow before using the funds, and other factors. Maximizing your mutual investments take quite a bit of research and time, as the best funds change. What may be good this year may not be good next year.
   One thing that could be done to get started is to invest in what is called an index fund. These are funds that track a major stock market index, so your investment will always do the same as that overall market indicator. It is difficult to beat average market performance, so unless you plan to spend a great deal of time researching, this may be a good way to go. For example, the S&P 500 is generally accepted as the most stable and appropriate index for this purpose, and Vanguard has a fund with the ticker symbol VFINX that mirrors this index.
Also, I recommend the book "Investing for Dummies". It is an easy read, and introduces most major forms of investment. By reading this, you will begin to form ideas on what investments will fit your needs most, and the book does provide additional resources for you to look into the topics you are interested in greater depth.
Some websites that are good sources are www.MotleyFool.com and http://finance.yahoo.com

I hope that this helps gets you started! An index fund is a great place to begin, where you investments can start working for you right away while you consider doing more in depth research. If I can be of any further service, please do not hesitate to follow up with me.

Sincerely,
Paul Henneman
President
ValuEngine Inc