Comments on: I have some very conservative investments, mostly mutual funds. What will happen to them in a deep recession?

By: the d

the d — Wed, 12 Nov 2008 04:34:23 +0000

i agree with bosai, mutual funds suck!!!!

By: bonsai

bonsai — Sat, 08 Nov 2008 18:51:05 +0000

Your money devalues through inflation on average by about
3 – 4% a year. You usually get 5% in a cash portfolio (interest), which keeps you just above inflation.
If your fund makes less then inflation, you slowly loose your money.
About 90% of all funds are money lossers and I have yet to figure out, how the existence of funds is justified.

By: jeff410

jeff410 — Fri, 07 Nov 2008 09:44:20 +0000

If they made it through 2000-2002 ok I wouldnt worry about it much. And if you still have a long time to invest I wouldnt worry about. Just hang on and dollar cost average.

By: curtisports2

curtisports2 — Tue, 04 Nov 2008 15:09:44 +0000

Generally, very conservative investments lose less value than riskier ones during recessionary periods. The upside potential is lower, but so is the downside. Definitely ride things out.

By: afk

afk — Tue, 04 Nov 2008 04:12:56 +0000

I have read that if you’re not going to buy individual stocks, that your best choice is Vanguard’s S+P500. It has by far the lowest fees of all the mutual funds. Apparently mutual funds are sneaky when it comes to charging you fees and they’re hard to see. Vanguard’s S+P500 is a slow and steady horse with virtually none of these fees. I think it averages around 9-12%. I’m not an expert though, so do your own research.