| T.R | Title | User | Personal
Name | Date | Lines |
|---|
| 300.1 | Verify, but I believe Vanguard is lowest expense | MCIS2::BONVALLAT | | Mon Oct 26 1992 18:13 | 6 |
|
If its going to be an index fund (not my favorites, but that's another
subject), then I think Vanguard is your best bet. They seem to work
harder than anyone in the industry to keep their expense ratios down -
and their service is very good. That's about all you need to care about
with an index fund - after you've chosen your index.
|
| 300.2 | Vanguard | DYNOSR::CHANG | Little dragons' mommy | Tue Oct 27 1992 10:38 | 6 |
| I have to agree with .1, Vanguard is probably the best choice
for index funds. Vanguard also has a very large selection
when compares to Janus and 20th Century. Most of Fidelity
funds are load funds, which I would avoid.
Wendy
|
| 300.3 | | BRAT::REDZIN::DCOX | | Tue Oct 27 1992 11:48 | 26 |
| Janus and 20th Century do not offer Index Funds (as of "report")
Vanguard Index funds require a minimum of $3000 initial investment; I believe
Fidelity is $2500. I also believe that the IRA minimums are lower.
Vanguard advertises its low fees as the reason why they are able to come close to
matching their index, however, if you re-invest the dividends, they charge you
$2.50 per exchange. The smaller your investment, the more serious the effect of
the charge.
Again, first decide what your long term goals are, then research to find the
investment vehicle that best meets those goals. When you are looking at Mutual
Funds, all you have to go on is their statement of the Fund's objectives and the
published historical data to show how well they have achieved those goals.
As a personal example, I was in a similar situation in 1984. My goal was "safety
in numbers" through diversification. Fidelity Magellan was the largest and most
diverse fund. My reasoning was that the fund would be resonably safe from major
downturns in any one stock/sector and that only a "crash" would significantly
affect my capital. I measure investment performance on an "annualized ROI"
basis; the value of my initial investment in Magellan (including effects of the
initial sales load as well as the annual $10 IRA fee) is the same today as if I
had placed it in a bank and earned 13.5%/year compounded monthly.
FWIW
Dave
|
| 300.4 | | AIMENG::AIM002::grinnell | | Tue Oct 27 1992 18:13 | 6 |
| Fidelity is waiving load fees on IRA investments, starting in November I think.
As mentioned previously, if you really want an index fund, it doesn't matter
too much whom you go with, and I can say from years of experience that you'll
get excellent service from Fidelity.
Mark
|
| 300.5 | Correction on Vanguard | SLOAN::HOM | | Tue Oct 27 1992 20:36 | 7 |
| >Vanguard advertises its low fees as the reason why they are able to
>come close to matching their index, however, if you re-invest the
>dividends, they charge you $2.50 per exchange. The smaller your
>investment, the more serious the effect of the charge.
Vanguard does have a $10 annual fee per account payable quarterly.
There is however, no $2.50 charge per exchange.
|