Re:[Ask HN] How should I teach myself about investing?
by pascalchristian on Wednesday March 31, 2010 @10:04AM
(#1231786)
if you are a medium/high risk I'd say go for mutual funds. but don't get a US based funds. the fee is very high and pretty much not worth it. get an offshore funds instead. funds in developing countries do not charge yearly fee, only an entry/exit fee. Indonesian based funds, which I invested on, has recently gained over 100% return this year. Read: http://www.thestreet.com/story/10684590/indonesia-etf-up-146...
1) If you're low risk then stick it in a stable government bond.
2)If you're medium risk stick it in an low-fee index tracker
Most funds under-perform the market. There's no statistically sound way you can differentiate successful funds from lucky funds.
Trying to beat the market is a suckers game. There's no way you can out-analyze an analyst who spends 100 hours/week understanding a sector unless you have inside information or unique expertise. The first is illegal, the second is unlikely.