| It's obvious that any investor is going to want to | | | | retired, or close to it, this kind of drop would be |
| be holding the best mutual funds. The problem is | | | | catastrophic. Conversely, if you were just out of |
| that most investors don't really have a clue as to | | | | school with 40 years until retirement and very |
| what they expect from a mutual fund, and so | | | | little to invest right now, the prospect of that kind |
| don't have a plan to identify the best fund for | | | | of drop would not seem as frightening, and might |
| their particular situation. | | | | be tolerated in the hope that you could see the |
| The will change from one investor to the next. | | | | higher returns that equities have brought. |
| We all have our particular situation to address. | | | | If you are looking for some kind of income |
| Factors like age, income, risk tolerance, years until | | | | stream out of these funds, because you are in |
| retirement, and so on have a real impact on the | | | | retirement, then either fixed income funds or |
| expectations you have for your investments, and | | | | stock funds investing in high dividend yielding |
| therefore the "best" fund for you. | | | | stocks could be a great choice. On the other |
| For example, take a look at your risk tolerance. | | | | hand, if you are currently in a higher tax bracket, |
| During the bear market years of 2000 through | | | | more income may not be what you are looking |
| 2002 the Nasdaq 100 fell almost 80%, and the | | | | for, but instead would be interested more in |
| S&P 500 feel almost 50%. So to be fulling | | | | growth type investments that are likely to |
| invested in only the equity markets would have | | | | increase in value over time, but the results would |
| exposed you to this kind of risk. If you were | | | | be redeemed as a capital gains in later years. |