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Mutual Funds Coming to a Theatre Near You
Lights! Camera! Action! Drama, suspense, thrills and adventure—some people go to the movies for all this, but others prefer the excitement of investments. And there are some interesting similarities between the two industries. To make a good movie, there must be talented stars cast in the lead roles, a great director and a good record or rating. The rating is important because if the audience sees that the movie is not highly rated, they will not want to waste their money. Like movies, mutual funds must have a good manager, good investments, and a good record. The mutual fund’s manager is like a movie director. Smart investors who are shareholders will want to invest their money in a mutual fund that has rising stocks -- or “stars” -- in its portfolio. And, for people to buy shares of any mutual fund, it must have a good past record.
Also just like movies, mutual funds offer something for everyone. There are stock market index funds that invest the shareholder’s money in the stock market. Even though these funds are risky, they are very likely to have good return. Mutual funds investing in bonds are good for long term investors that want low risk and good return. I have chosen these two types of mutual funds to invest my college savings because I believe that these will make enough money to put me through college and the additional years of graduate and/or professional school. My box office favorites are directed by Vanguard.
Vanguard Total Stock Market Index Fund is a Real Hit with Investors!
The Vanguard Total Stock Market Index Fund, directed by Gerard C. O'Reilly, is a real hit with investors for obvious reasons. Starring ExxonMobil Corp. and General Electric Co. in the lead roles with Microsoft Corp., AT&T Inc., The Procter & Gamble Co., Bank of America Corp., and Citigroup, Inc. in the supporting roles. And with over 3,600 more in the cast and crew, what’s not to like? Featuring the chance for good returns, reasonable risk, and low cost, this fund has the potential for an Oscar worthy performance. Even though I know that investing my money in the stock market can be risky, I believe that this mutual fund is a very good way to start because it has investments in the whole stock market, and it does not rely on the talent of one superstar. Also this mutual fund has a low cost. Vanguard charges fairly little for their services, which means more money to get into the act. Plus, the Vanguard Total Stock Market Index Fund is great for long-term investors for 8 years or longer. This is just perfect for my college education and is another reason why I would like to have it added to my portfolio. I rate this mutual fund an astounding four and a half out of five stars.
Vanguard Intermediate-Term Treasury Fund is a Class Act!
The Vanguard Intermediate-Term Treasury Fund, directed by David R. Glocke, is a sound choice for investors seeking a high and relatively stable level of interest income and a bond investment to balance the risks of a portfolio containing stocks. This first rate production with a cast that is backed by the full faith and credit of the United States government is a sensible way to invest for college because it is made up of intermediate-term securities that provide low risks. This means that my original investment—the principal—is fairly safe, as compared with typical stock investments, or stars. This fund is a solid choice for youth and teenagers because there is an excellent chance that the money—and its growth—will be there when college bills come due. I would like this in my portfolio because it would balance the risks of the Vanguard Total Stock Market Index Fund. For its low-risk and low costs, I rate this mutual fund four out of five stars.
Since I will start paying for college in seven years, I will be thankful to have money in funds that provide the opportunity for growth and preservation of principle as well as a likelihood of high-income payments. I give these investment strategies two thumbs up!
Sources
“IMDb Film Glossary.” 1990-2007. Internet Movie Database. 11/25/07. http://www.imdb.com/Glossary/
“Vanguard Total Stock Market Index Fund Investor Shares Overview.” 1995-2007. Vanguard Group, Inc. 11/25/07.
https://personal.vanguard.com/VGApp/hnw/FundsSnapshot?FundId=0085&FundIntExt=INT
“Vanguard Intermediate-Term Treasury Fund Investor Shares Overview.” 1995-2007. Vanguard Group, Inc. 11/26/07. https://personal.vanguard.com/VGApp/hnw/FundsSnapshot?FundId=0035&FundIntExt=INT
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