Yes, I’m going to college! Not tomorrow, but soon enough to seriously think about how I will set aside money for my college education. Education is an investment. Therefore, I am an investor. Investing in mutual funds can be a great way of growing money for college. Mutual funds are companies that help investors diversify their portfolios by investing in a variety of stocks or bonds. This is done by pooling funds from investors’ savings. For example, some mutual funds specialize in investing in stocks from domestic companies. Others focus on value, some emphasize growth, and others combine both growth and value. Some mutual funds focus on investing in companies located outside of the United States while others focus on investment in companies located all over the world. Still some other mutual funds focus on social issues such as the environment. This is why investing my savings in mutual funds will serve best for setting aside money for coll
]]>For my college tuition, I am setting up my investment portfolio which in seven years, will help pay for my education. Since this is over a long period of time, my investment strategy can be riskier than it would be over a shorter period of time. I have selected a balanced mutual fund and a global stock fund to help me with the savings I am setting aside for college.
The balanced mutual fund has a wide variety of stocks and bonds. The bonds and stocks are both equally balanced. The balanced mutual fund invests in different industries selling stocks, and also invests in different industries selling bonds. The wide variety in a balanced fund offers a great amount of diversification. This creates beneficial additions to my portfolio. The global stock fund on the other hand, invests in companies positioned all over the world, and may not be synchronized with the domestic stocks. Since the stocks of these foreign companies are located i
Saving for College
When choosing funds to invest savings for college there are different aspects to look at before investing. The main quality to look for is diversification. Funds that are more diversified are more likely to do well. Choosing to invest in a mutual fund can save time and money. In six years, it is estimated that the cost of attending a private college will be 200,000 dollars for four years. When picking two mutual funds, it is wise to choose funds that are different. One fund could be risky, but likely to have a higher return over many years. The other could be safer with a lower but guaranteed return. The two mutual funds I have chosen to save for college are CGM Focus and Fidelity Capital & Income.
The first mutual fund that I chose to add to my portfolio is CGM Focus. This is my risky fund. It focuses on economic growth and large companies. It tries to reduce risk by blending growth
For my college savings, I want to invest in the Sierra Club Stock Fund, an eco- friendly fund, and Putnam Investment Fund, a mutual fund. The Sierra Club Fund is riskier, but with the current problem of global warming I think that it is likely to do very well and has the ability to grow very fast. Putnam Investment, on the other hand, is a well established fund that may not grow so fast, but is safe. Putnam also has a track record that would increase my principle, a lot more than if it was left in the bank.
Eco-friendly funds, suchas the Sierra Club, are becoming more popular, especially with younger adults. I predict that it will do well in the long term. With the cost of fuel and oil going sky high, investing in alternative energy makes sense. The added problem of increasing greenhouse gases and global warming has also increased the importance of investing in alternative energies. It is not onl
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