Best mutual funds for IRA 2012
|February 23, 2012||Posted by John Border under Investments in 2012, Mutual Funds|
When investing for retirement in an IRA, you have the option of getting an IRA through a brokerage company or a mutual fund company. Regardless of which type of company you use to open your IRA, you are free to invest in any type of vehicle that you like such as stocks or mutual funds. Typically, when you have an IRA account through a mutual fund company you are able to invest in the funds without having to pay any extra type of commission or fee, which is different from investing in stocks through your mutual fund. Doing that usually requires a per transaction fee or commission. Investing in mutual funds via an IRA is a common investment tactic since the funds are generally less volatile than the stocks. This is especially true since most IRA investing is long term investing instead of short term investing.
The best mutuals funds for IRA investing in 2012 really depend on your investing goals. If you are investing for the short term, then the best mutual funds for you are different than if you are investing for the long term. This is because the most important thing to consider when evaluating mutual funds is the rate of return. With short term investing, the most recent rate of return is more important than the longer rate of return since inception of the fund.
For the short term investor, the best mutual funds for IRA investing in 2012 should have a three month rate of return in excess of 20 percent. The fund with the best three month rate of return is the Fidelity Select Construction & Housing fund. With a 21.95 rate of return, this fund is perfect for short term investors. You do need to meet minimum investing requirements of $2,500 though. Find it under the symbol FSHOX. Another good choice is the Pacific Advisors Small Cap Value A fund, which only requires a minimum investment of $1,000. It has a 21.24 percent three month rate of return and trades under the symbol PASMX. If you have a lot of money to invest, then the Fairholme Allocation fund is another great choice. It requires a minimum investment of $25,000. The three month return rate for this fund is 21.47 percent and you can find it trading under the symbol FAAFX.
For the long term investor, the best mutual fund for IRA investing in 2012 is the Oceanstone Fund. It has a good rate of return at 7.70 percent. To invest in this fund, you need at least $2,000. To add it to your IRA, look for it trading under the symbol OSFDX. The Direxion Mthly NASDAQ-100 Bull 2X Inv fund is also a decent choice for long term IRA investing. This fund has 3.45 percent rate of return for the previous three months. To invest in it, you must meet minimum investing requirements of $25,000. If you don’t have that much to invest, try the Rydex Dynamic NASDAQ-100 2X Strategy H fund. It has a three month return rate of 2.44 percent and only requires a $2,500 investment. It trades under RYVYX.