Which fund is the best return for retirement ?

[savingdealz]

Right now I have 1300$ in EQUITY INCOME in Troweprice. This one is for Roth IRA. I am 27 years old. I am thinking to have another fund at Troweprice. When I used " I need help selecting a fund", after I finished some steps, troweprice gave me these funds:

Spectrum Growth:---- 1yr(-25.66%), 5yr(0.24%), 10 yr(1.51%), SI(7.66%)
Retirement 2030 Fund: 1year(-22.96%), 5yr(0.60%), 10yr (N/A), SI (6.23%)
Retirement 2035 Fund: 1year(-23.90%), 5yr(0.28%) ,10yr(N/A), SI(0.35%)
Retirement 2040 fund: (-23.91%) ---------(0.29%) -----(N/A)------ (6.03%)
retirement 2045 fund: (-23.86%)----------(N/A) -------- (N/A)------ ( -1.56%)
retirement 2050 fund: ( -23.92%) ----------(N/A) --- --- (N/A) ----- (-11.54%)
retirement 2055 fund: (-24.04%) ----------(N/A) ----- -- (N/A) ----- (-11.60%)

These funds are Growth Investment Approach (100% in stock). If I want to invest in another fund, would you suggest for me which fund is the best for high return? Will this fund get the highest return than EQUITY INCOME?

[kgloh_23]

Higher return fund have higher risk

every high return fund come with high risk. There are no guarantee in any fund that will give high return, history data just a reference. The most important is to invest regularly and always rebalance your portfolio.

[savingdealz]

So, should I concentrate on EQUITY INCOME only ?

[jIM_Ohio]

those funds were identified because you have less money ($1300) than someone with more money. Try doing that same quiz and tell them you have $130,000, you might see some different choices.

Before picking funds, you need to identify your asset allocation and risk tolerance (risk tolerance is what you need to know, and the asset allocation is how you take the various risks).

If you focus on funds you will find lots of trees, but will miss seeing the forest the trees are in. If you focus on risk and asset allocation, you will answer your own questions most of the time.

[savingdealz]

Thanks Jim. I just tried a different test with 200,000$. There are 2 Investment options: (Growth Portfolio)

1. A single Retirement fund: Simplify your retirement investing by choosing a single fund that offers a diversified portfolio and is managed to a specific retirement date.

2. Select as many funds as needed: Create your own portfolio with one fund for each sub-asset class or complement an existing portfolio. Provides the most control, but also requires the most effort.

For the first options: I see the same result such as retirement 2055 and spectrum growth
For the second option: the system gives these results: Large Cap Stock, Mid/Small Cap Stock, and International Stock.
So I think that at TROWPRICE, even though I invest in different amount the system still gives the same result.