Looking to invest in a mutual fund. I can contribute about 500 every month and can put in about 5k to start with. I already have an account with Vanguard. Any suggestions ?
Keep it simple, very low cost and broadly diversified. If you agree on these principles, here you go: VTI (domestic stocks) VXUS (international stocks) BND (diversified bond fund) The next and most important question would be: "in which proportion?". There's no way anyone can answer this question without knowing your personal circumstances. Honestly, learn the basics of finance, so you can fine tune more appropriately, you can start with this: https://www.goodreads.com/book/show/40242274-a-random-walk-down-wall-street Final note: I assume you know what you're doing, i.e. this is money you can afford to lose, you have enough in your bank account to cover for 6-12 months of expenses, and you are investing for the long run (10+ years).
Also, you asked for "mutual funds" specifically, while the above are ETFs, which I personally prefer over mutual funds (no set minimum, slightly lower fees, trade like stocks). Nonetheless, you can find the equivalent of the above ETFs also as mutual funds: VTSAX, VTIAX and VBTLX respectively. In your case, the advantage of mutual funds might be the ability to setup automatic (e.g. monthly) investments, and the fact that you can buy fractional shares.
Thank your for your response. Appreciate it ! Yes, I have enough saved to cover for 2-3 years of expenses. What do you mean by “trade like stocks”. Is there a lock-in period with the mutual funds ?
When to invest in MF and when to invest in ETF? New here
Why funds and not etf’s instead? They are Cheaper and more liquid
I prefer mutual funds since I can put orders in whenever and don’t have to worry about spreads. Moreover they make TLH more convenient since you can make atomic changes at NAV levels after close from one fund into another. I’m not into trading, so I only do buy and hold + TLH. I’d also try to not hold identical funds in 401k and taxable since it makes TLH easier as it avoids wash sales.
If it’s for basic no-frills retirement just use their Target fund for the year you want to start withdrawing.
Slightly higher expense ratios, but yeah simplicity wins for most people. Three fund portfolios seem easy enough to deal with though for my taste.
John Bogle recommends only two funds required. Total stock market and one total bond market. Adjust the ratio based upon your risk tolerance.