If you want to own just one investment in 2011 and 2012 your best mutual fund investment is a traditional balanced fund. On the other hand, with just a little effort you can put together the best investment portfolio if you also invest money in a few additional funds. This will give you total portfolio balance, which means you should sleep better at night in 2011 and 2012 no matter what happens on the investment scene.
I call a traditional balanced mutual fund the average person’s HULT PRIVATE best single investment because it gives the investor instant balance. When you invest money here you automatically own a small part of a large investment portfolio where 50% to 60% is in stocks, and about 40% in bonds with the rest in safe money market securities that earn interest. Since bonds often counterbalance losses in stocks when the stock market is weak, this is probably your single best mutual fund investment if you want to keep life real simple.
The problem is that higher inflation or rising interest rates in 2011 or 2012 could hurt both bonds and the stock market in general. For this reason your best investment strategy is to also include investments in your total portfolio that can march to the beat of a different drummer when inflation or higher interest rates are a threat. The best mutual funds to add to your portfolio are those that invest your money in specialty areas like real estate, gold, energy, and basic materials like aluminum and copper. Add these to your portfolio and you have what I call total balance.
Energy stocks can soar when oil prices do, real estate and basic materials prices can benefit from inflation, and gold prices thrive on uncertainty. The best mutual fund investment portfolio is one that includes funds that invest your money in these special sectors. Invest about 80% of your money in the best balanced fund you can find, and then spread the rest out in those that specialize in the above special sectors. You can invest money and put together the best investment portfolio by simply investing in funds.
The largest and best mutual fund companies offer these investment options and feature a low cost of investing as well. Don’t pay sales charges, which are called “loads”. Check the internet for no-load funds and put your own best investment portfolio together. No matter what happens in 2011 and 2012, you’ll sleep better at night if you have total balance on your side.
You can do it the easy way, in which case your best mutual fund investment portfolio is simply a traditional balanced fund. Or you can go a step further and achieve total balance by simply making some additions to your portfolio. The best funds to add to your portfolio, in my opinion, are those that invest money in the sectors mentioned above.