MIOFX and Question

[LancerSEguy]

Hello all,
I am still new to the mutual fund and IRA game. I had a quick question. I have recently opened up an account with E-Trade and should be making my initial investment into my Roth IRA this tuesday. I am only going to start with 1000 and then investing a few hundred every month. I was looking at the fund MIOFX as it seems to have a strong past and I was hoping someone could take a look at it and tell me if I am way off or not.

My other question is, is it smart to invest in more than one mutual fund after I have built this one up to 5-6k or some individuals stocks? Along with that, if I stop investing in MIOFX at some point and start putting money into another fund is that a good choice? Thanks in advance for all your help.

[safari]

It's not a bad fund, but you shouldn't choose your investments only based on the past results. You need to evaluate how that fund compares to similar funds (in this case, other international large growth funds) and how it fits into your investment objectives. Another factor to consider is your risk tolerance. International stocks historically carry the most risk. Fund management fees is another thing you have to look at. Every fund has a minimum initial investment, which is usually greater than $1,000. For MIOFX that amount is $2,500. For someone who is just starting out, I'd recommend buying one of the index funds or target retirement funds, which will give you instant diversification. Once you have enough money there and learn more about investing, you can look into buying other funds and individual stocks.

[maat55]

Most advisers recommend that you break your investment into 4 categorys. Growth, Agressive Growth, Growth & Income and International. You can diversify into all of these groups in one account. Look at funds that perform well over five or more years and if possible in true no loads. I myself am going to also look at the index funds. Your getting started at a great time, possibly. Whoever really knows, but long term thinking has always been good. Good luck.

[dardhel]

I agree with safari. You shouldn't rely on past performance. However, I am a fan of Marisco funds. This one is pretty risky though if you are just starting out risk tends to equal return over the long run. It does have a $1000 initial for IRAs so you should be alright.

Anyway, I would start this fund put a $100 a month into it from now on and whatever else you can into the IRA as cash. Save enough for a second domestic growth fund (maybe Marisco 21st Century) and then you are somewhat diversified.

[LancerSEguy]

Thanks for the advice everyone! I am still looking into my options while i wait for my fund to transfer. Thanks for all your help!