What's the best index fund to buy for medium term with decent returns?
By medium term, I mean 2-3 years and by decent return I mean 8-10%. Edit : I'm a rookie and seems like my expectations are too much lol. In that case, which index fund should I buy for 5% return over 2-3 years?
Bitcoin
Flip a coin. There are no funds of any kind that can be expected to reliably return 8-10% in such a short period of time. Stocks might return 30% or might return -30%. Either lower your return expectations dramatically or take a big risk.
Short term junk bond funds
I am a rookie too. I buy boring s&p 500 index funds.
What's the ticker?
Swppx
Vfiax
SPLV. But be careful what you wish for. While you may be very likely to get 5-8% returns, you would miss out on potentially 10+% upside Lower volatility ETFs actually gained even in a down year (last year, when SPY returns were negative depending when you counted). However, you will trade upside. That said, I think markets will be unpredictable, so feel free to put at least a quarter of ur equity allocation in SPLV if ur looking for “safe with happy returns”. Note the higher dividend also Another possibility you can look into are REITs. The issue is that tax is high. But a lot of high return REITs will do 10% returns. It’s just more volatile, and ur income is going to be taxed at the highest bracket
Great read! Thanks a lot :)
So you really mean short term and great returns
To tack on a helpful reply: you should tell us what your timeline looks like and what your goal is. Example of timeline: 0 - 1 years, 2 - 10 years, 10+ years Example of goals: capital appreciation, capital preservation, retirement It's also helpful to know what your appetite for risk is. Since you're asking for an index fund, I'm guessing you have a somewhat low appetite for risk and you want something you can put money in and forget about. An S&P500 index can be decent if you're looking at 10+ years. Likewise for an S&P high dividend yield fund.