Cubsfan

Since I'm currently looking at my 401K and trying to evaluate some mutual funds, I thought I could get some help from the people here, and also maybe it'd be a good tutorial on what to look for in Mutual Funds.

Anyway, here are a few of the more aggressive ones I'm considering, and some of my thoughts (which may, in fact, be absolutely meaningless ):

Vanguard PRIMECAP Fund -- Admiral Class
http://quicktake.morningstar.com/Fun...A&Symbol=VPMAX
Expense Ratio is .38%
No Load
91% Socks, 9% Cash. Relatively heavily invested in Hardware and Healthcare (I think that would be called heavily invested, around 18%-21% each)


American Funds New World Fund -- Class R5
http://quicktake.morningstar.com/Fun...A&Symbol=RNWFX
1.05% Expense Ratio
No Load
Telecommunications and Consumer Goods are the major industries
71% Stocks, 10% Cash, 12% Bonds
International

MFS International New Discovery Fund -- Class I
http://quicktake.morningstar.com/Fun...A&Symbol=MWNIX
1.29% Expense Ratio
No Load
5 stars Morningstar Rating
Most Heavily invested in Financial Services and industrial Materials


Ok, so there's some quick facts I've grabbed. A few questions:
Expense ratio -- How high is too high?
No Load -- That's what I should be looking for, right?
Should I be concerned with the actual fund manager's track record or not?

I'm guessing too that I should make sure that the funds I'm in are relatively diversivied so I don't get screwed if something happens to a sector or two.

Any other things I should be looking at, or have misinterprited? Any comments on these particular funds? Anyone else have any questions about mutual funds? (Feel free to ask here) Did this post make any sense whatsoever?

ray

Yes, I like to do a full background check of the fund managers. I will look up to see how long they've been managing that fund and then take a look at any funds that they managed previously. I rarely invest in mutual funds where the managers have not been there for at least 5 years.

What are you investment goals?

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Cubsfan

I'm 24, so I'd maybe term it aggressive growth? I'm not scared of a few dips, and I accept the risks that come with these things.

VTGreg

If that is the case then you should look for mutual funds that hold mainly stocks. I am also 24 and looking at funds that are at least 85% stocks and more in the range of 90% or 100% stocks. At this point we can afford to be agressive, but it all depends on how much risk you can stomach.

As far as the fees associated with the funds a good expense ratio to shoot for is <1.00% and you are wise to be looking at no load funds. Those two items can really eat into your profits if you are not careful.

I agree with lilbigblue about the fund managers. You should look for funds that are run by people with a good track record. If a fund has performed well over the last 5-10 years under the same manager then it is likely that the person is doing something right.

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Cubsfan

So does anyone have any comments on the three funds above?

Also, how do you look up a fund manager's history? Is there a site somewhere?