is now the time to buy mutual funds?

[rigz]

awesome - thanks for the info steve and jpg.

another question: is there an advantage into buying, say $1000 of one mutual fund vs $200 of 5 different mutual funds? or does that just start falling into the overlap that you refer to?

[snafu]

rigz: Wow! you've been given better explanations,outlines comparison and contrast models than I've seen from MF sales staff and hourly paid financial advisers. The bet thing about Mutual Funds is that they are a low fee, long term accumulation vehicle with potential for satisfactory return on investment.

I recall you have about 25 yrs before retirement and wish to point out that over the years as your fund grows, economic conditions change, rules change and new/different circumstances present...you can make changes to your MF portfolio. At least twice a year it's important to review the fund's holdings as managers change, economic conditions change etc. A buy and hold forever mindset has potential to be financially painful.

[disneysteve]

is there an advantage into buying, say $1000 of one mutual fund vs $200 of 5 different mutual funds?

It totally depends on the funds. Let's say you buy $1,000 of a Total Stock Market Index fund vs. buying $200 each of small cap, mid cap, large cap, growth and value funds. The single fund purchase will likely encompass everything the 5 individual funds have.

On the other hand, if you buy $1,000 of an S&P 500 Index fund vs. $200 each to a Total Stock Market Index, a real estate investment trust fund, a commodities fund, an international stock fund and a intermediate term bond fund, then the 5 individual funds cover a much broader range of assets than the $1,000 purchase.

Keep in mind that funds have minimum investments that vary from company to company. With Vanguard, with rare exception, the minimum is $3,000 per fund.

Wow! you've been given better explanations,outlines comparison and contrast models than I've seen from MF sales staff and hourly paid financial advisers.

I've often said that posting a question here will get you better, and less biased advice, than paying any investment professional. Is the advice given here always perfect? Nope. But neither is the advice given by investment professionals. At least here if one person says something wrong, someone else is likely to contest it.