From: bl528@cleveland.Freenet.Edu (Ken Meinken)
Newsgroups: misc.invest
Subject: Re: Mutual Funds, How to?
Date: 15 Apr 92 16:16:07 GMT
Article-I.D.: usenet.1992Apr15.161607.3966
Reply-To: bl528@cleveland.Freenet.Edu (Ken Meinken)
Organization: Case Western Reserve University, Cleveland, OH (USA)


In a previous article, fsrhd@acad3.alaska.edu () says:

>
>
>	I know this must have been asked like a zillion times on the net
>so please reply e-mail to save bandwidth.  I'll consolidate the replies if
>anyone shows interest.  Now to my question.
>	I am looking to invest some money in mutual funds.  How do I go about
>selecting a fund, what funds have shown good returns, etc. etc.  I am a
>novice at this so please make it clear when you refer to acronyms.  Thanks for
>your help.
>
>-- 
>Bob Devine
>fshrd@acad3.alaska.edu
>

Bob,
How to go about selecting a fund, what funds have shown good returns, etc.:

Read, read, read.  Read articles in Money Magazine, Kiplinger's Personal
Finance.  Forbes (especially see the Sept 2, 91 issue.)  Back issues
should be available at most libraries.  

Good libraries may have the Standard & Poor's/Lippert publication on
Mutual Funds.  Likewise, the Morningstar reports are filled with 
reviews of over 1000 mutual funds (You can get a 3 month trial sub
to Morningstar for $50.  I think that's a good value since it gives
you all the data, but a full year's sub at $399 is too much for me.)

I've also been impressed with the Rugg & Steele Mutual Fund Selector.
It's a PC-DOS program with lots of data on about 2000 mutual funds, 
including 10 year data, ranking, loads, phone numbers, etc.  You can
also export the data and bring it into Lotus 1-2-3, etc. for further
analysis.  The full cost with updates is $199 to $599 depending on
monthly or quarterly updates, equity or fixed income funds, etc. 
HOWEVER, they have a special "Kiplinger Special Edition" which
includes data through 12/31/91 for only $30 ppd.  I've used it
extensively in sorting through data, IMO, it's definitely worth
the $30.  (800-237-8400 ext 678).

Some people have asked where to get 800#s for obtaining information
on mutual funds.  All of the above sources have that info.

IMO, one word of warning.  Last year was an excellent year which
makes even the 3, 5 and 10 year averages look excellent.  Dig
deeper before you buy!  Look at individual years.  Look at up
and down markets.  Most of my buying is concentrated in funds which
have done  very well in 3 and 5 yr periods, consistently.  There are
a handful (less than a dozen) which have consistent good 
performance over the long haul.  Many of the good performers are
in health/biotech which could suddenly become unpopular (the
biggest losers so far this year have included Fidelity Select Health
and Financial Health Specialties and Fidelity Select Biotech and 
Oppenheimer Global Biotech).  They are risky, but they also stayed
on the top during the 87 and 90 down years.  OTOH, Fidelity
Magellan won't disappoint anyone, even though it no longer is a 
top performer (I've almost doubled what I put in to Magellan
in early 87 and 88, even after it took a beating in the 87 crash.)

Look for consistent good result over the long haul.  And diversify!

Ken