Sunday, September 11, 2016

If you have $100,000 to invest ...



Let's play a little game.

Let's say you have $100,000 to invest (that means not to pay debt, or buy gifts, or charity. This is just strictly to invest!). And let's say you're going to invest it in a mutual fund. Which funds you'll choose? And how would you allocate it? Will all go to one fund? Or will all be distributed evenly to all funds available? Or ... what will be your preference?

Here's some data about the fund choices:

Fund Expense Ratio 10 Year Performance 3 Year Performance 1 Year Performance Year To Date
Fund A 0.10% 7.55% 12.31% 12.57% 7.84%
Fund B 0.14% 8.33% 9.32% 7.07% 9.04%
Fund C 0.25% 4.25% 2.68% 5.27% 6.69%
Fund D 0.20% 5.47% 7.96% 8.25% 7.00%
Fund E 0.45% 7.84% 12.11% 6.64% 2.70%

Will you based on your investment based on certain period in time? Like Year To Date data, or 1,3,10 year performance? Will you consider the expense ratio (cost) as well?

Remember the ground rules of investment:
1. Past performance doesn't guarantee future results.
2. Past performance are historical data.

So what will you do? I'm curious to know what your choice will be!

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