So Grandpa, who gave you $100 on your first Christmas, $200 the second, and so forth (God bless Gramps), just gave you $3,800 yesterday, and you’re wondering how to invest it. The first $1,800 you’re going to use to pay off your credit cards — not having to pay 18% interest is like earning 18% tax-free, risk-free. But what to do with the remainder?

Earlier this month someone asked my opinion of the New Perspective fund. I knocked it for its load, and a couple of other things, without offering much of an alternative. So, OK. Here’s an alternative:

“The relatively new T. Rowe Price Global Stock Fund has all of the advantages of New Perspective with none of the disadvantages,” writes my friend Less Antman. “It invests in large companies all over the world, and has the traditional Price respect for low expenses. It is managed by the same Martin Wade team that has been running International Stock to the top of the Forbes list for 7 years running (not that the Forbes list has done any better at predicting the future than anyone else).”

I realize, however, that many of you prefer to throw most of the darts yourself. Me, too. When there’s such a strong argument that it’s best to invest through mutual funds, why “do it yourself?”

Come back tomorrow for the answer. (And please put in a good word for me with your grandfather.)

Tomorrow: The Top Ten Reasons NOT to Buy Mutual Funds



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