Mutual Fund Recommendations

Adam Garcia is 26 and earns 45,000. Already accumulated 5,000 in a savings account and is seeking a secure place to invest the amount and begin a periodic investment plan. He knows his long term life frame means he should be willing to take some risk but is uncomfortable with the thought of losing money. Prefer moderate overall return rather then high returns that come with high volatility.

Analysis: Adam is a young investor who is at the beginning of his investment cycle. For other investors in his situation an aggressive growth fund might help achieve maximum capital appreciation over a long term time frame. However Adam is risk adverse and has not had any experience with investing in the securities market. A balanced fund is a good place to begin investing for a high total return and low volatility. Description:E

Great 60, is retiring and living alone in a home with a fully paid-off mortgage. Her portfolio contains growth stocks and highly qualified bonds. she has invested in the stock market all of her adult life and is comfortable with risk, but her objective is a moderate level of current income to supplement her corporate pension plan distributions and the earning from her IRA.

Analysis:Greta retired and requires current income which might at first indicate a fixed income fund. However, she can probably expect to spend 15 years or more in retirement and therefore should maintain some of her portfolio in conservative equity investments. An equity fund that aims to achieve current income and growth income best match her objectives. Description:G

Helen is 29 and is seeking a long term growth investment. She is concerned about the loss of purchasing power as a result of inflation and often complaints about high commissions and charges that reduce her investment returns. When she was in college she took a few economics courses and firmly believe that securities analysis are not able to consistently out preform the overall market.

Analysis:Helen requires a mutual fund that offers the potential for long term capital growth. She believes money managers cannot consistently outperform the overall market. This indicates that an index fund that attempts to match the performance of the stock market is the most appropriate investment for her. Description:I

Jane is 24 earning 20,000 as a sports anchor seeking to invest 1,000 in savings. She does not want a fund that undergoes extreme fluctuations in net asset value. She is looking for maximum diversification and is wiling to accept a moderate level of risk.

Analysis:Jane is a young investor with a relatively small amount to invest and a goal of maximum diversification. An asset allocation fund allows her small investment to benefit from the return potential of the stock bond and short term debt markets. Description:F

Jim 32 & Sarah 30 have been married for 4 years. No children. High disposable income. Live in the suburbs planning on purchasing a condominium downtown so they can enjoy activities on the weekends. They need a date place to invest their down payment during the six months they spend shopping for the unit.

Analysis:Jim and Sarah are preparing to make a major purchase within the next six months. They require a highly liquid investment to keep their money safe for a short amount of time. Description:A

Liz is 45 is single and in search of maximum capital appreciation. She inherited a substantial amount of money a few years ago and she has taken an active investment in managing her investments. Currently her portfolio is diversified among common stocks, tax exempt bonds international investments and limited Partnerships. She has a long term time frame and is not adverse to risk.

Analysis:Liz has a high net worth and substaintial investment experience She is capable of assumng the higher risk and return potential of a speculitive invesment, such as the biotechnoloy sector fund. Description:L

Mark is retired at 72 seeking moderate level of current income and supplement his social security benefits and his company pension plan. Mark is a Depression era grandfather. Very conservative attitude towards investments. An equally important goal for him is capital preservation.

Analysis:Mark requires maximum safety and current income. although all fixed income funds aim to provide current income the US government bond fund offers the best combination of safety and a higher yield than a money market fund. Description:B

Eric 48 and Amy 50 have a combined annual income of more then 200,000. Their portfolio consists of common stock and bonds that offer a wide range of safety and return potential. The Cains are becoming even more concerned about the effects of a rising inflation in the US Economy. They are seeking to invest a small percentage of their portfolio in a fund that will provide additional diversification.

Analysis:The Cain's substantial portfolio is diversified between equity and debt. However to counteract the effects of the US economy on their portfolio returns they should invest a portion of their assets in a international stock fund. Description:K

Mike and Mary Cole are both 34 and employed din their computer software business. They have one daughter age 4. The Cole's want to begin accumulating the money required to send their daughter to one of the nations top universities in 14 years. In addition they have not yet begun to accumulate money for their retirement.

Analysis:The Cole's require maximum capital appreciation The long term time frame allows them to ride out the fluctuations of the stock market. The best investment for them is the stock market fund that concentrates solely on achieving long term growth rather than generating current income. Description:J

Andy Jones 52 and his wife 56 have a large investment portfolio (Stocks and stock Mutual Funds, International Fund). Maintain their cash reserves in a money market account. Employed (400,000/yr). Seeking a safe investment. Need to liquidate part of their portfolio when Andy retires (5 years). Need for diversification of their portfolio.

Analysis:The Jones's are almost entirely invested in the stock market. As they approach retirement they should shift some of their portfolio to bonds. Because they are in a high tax bracket (High annual Income), a municipal bond fund best meets their objective of diversity and safety. Description: Spencer Tax Free Municipal Bond Fund

Pat 60, and Sandie 58 are married and have raised three children. Both have decided to retire this year and are looking forward to an active retirement. They have accumulated a nest egg of about 1,000,000 which they have plan to use to travel the world, pursue their hobbies, and care for each others health. Both are concerned about risking inflation and are comfortable with a reasonable level of risk.

Analysis:The Longs are preparing for retirement. They want to maintain a comfortable standard of living which means staying ahead of inflation. A combined fund that offers both current income and growth potential is the best choice for this couple. Description:H

Gina and Peter Stout both 42 have two children ages 14 & 12. They have spent the last 10 years accumulating money to provide for the child's education. Their oldest child will enter college in four years, and they are not willing to take risks with the money they worked hard to accumulate. They need a safe investment that provides regular income to help them meet tuition payments.

Analysis:The Stouts investment goal of providing for their children's education is about four years away. They cannot afford to take a risk that a downturn in the stock market will occur within that time. A safe alternative that also provides additional returns is the high quality corporate bond fund. Description:D