| The less you know about funds the more you | | | | you balance and interest income. As the years |
| need the best mutual fund. There's a mutual fund | | | | pass and your retirement date approaches they |
| designed for the young and clueless that you can | | | | allocate less to stock funds and more to bond |
| buy, and it puts you on cruise control for as long | | | | funds to lower the level of risk. In retirement |
| as you own it. Simply invest in the fund and hold | | | | they lower risk even more with a greater |
| on... just make sure you don't set your speed too | | | | allocation to bond funds, and to money market |
| high. | | | | funds to increase safety. |
| Looking for the best mutual fund is very | | | | That's the investment industry's answer to the |
| challenging since there are thousands to choose | | | | best mutual fund for the young and clueless. With |
| from. What the average investor needs ideally is | | | | only 10 years to go until retirement this target |
| the best bond fund, best stock fund and a good | | | | fund could still have most of your money, like |
| money market fund. Then, if you could allocate | | | | two-thirds, invested in stock funds. Upon |
| the right amount of your total investment to | | | | retirement half of your investment assets could |
| each you would have the best investment | | | | still be in stock funds. If you are young, |
| portfolio any average investor could ask for. You | | | | aggressive and willing to accept the risk of being |
| would have a well balanced portfolio that promised | | | | heavily invested in stocks, the target 2040 fund |
| higher returns at only a moderate level of risk. | | | | could be your best mutual fund investment. If you |
| You'll never find the best bond fund or best stock | | | | prefer less risk, here's how to set your speed |
| fund year after year, but with the right balanced | | | | control setting down a notch or two. |
| fund you can have one of the best investment | | | | Go with a target fund with a closer retirement |
| portfolios available to average investors, all in one | | | | date, like a target 2025 or 2020 fund. This way, |
| fund or package. Let's say that you are within a | | | | even in the first few years, your maximum |
| few years of 30 years old and plan to retire in | | | | exposure to stock funds will be closer to 65%, |
| about the year 2040. The best mutual fund | | | | decreasing over time. To cut risk even more put |
| designed specifically for you that can be put on | | | | 20% or so of your total investment assets into a |
| cruise control, requiring no maintenance on your | | | | different fund, a money market fund. The money |
| part: a target 2040 retirement fund, or simply a | | | | invested here will be safe and earn interest. |
| target 2040 fund. Here's how it works. | | | | Finding the perfect or best mutual fund is less |
| You put your retirement money into a target | | | | important than putting together the best |
| 2040 fund and the mutual fund company | | | | investment portfolio that fits your needs and risk |
| manages it, making adjustments as you get older. | | | | tolerance. With a more conservative target fund |
| In the beginning they might invest 80% or more | | | | plus a money market fund on the side... you can |
| of your money in a variety of stock funds to | | | | cruise along and stay within your own comfort |
| give you high growth or profit potential. The rest | | | | zone. |
| is mostly invested in safer bond funds to give | | | | |