Rachil T: “I am a layman on investment. I graduated from college three years ago. Today, my manager, co-workers and I talked about personal investment. My manager suggested as a young person as I am, I should start investing. Since I am a kind of person who does not want to take the risk, a stable Mutual Fund will be suitable. My manager gave me your name. Thus, I found your web site. I would like to know if you can provide me some suggestions of seeking a stable, reliable, and trustful mutual fund. Thank you for your times and helps.”
Being young, Rachil, you can afford to take some risk and not pay for too much stability. (Stability doesn’t come free.) Just put away something every year, and down markets will be great for you in the long run, because they’ll allow you to buy even more shares when the price is low. Remember: when buying, you hope for low prices. It’s 40 years from now, when you start selling, that you hope for high prices.
Just be sure not to put money into the stock market, either directly or through mutual funds, that you might actually need in a year or two or three. That’s too short a time horizon for the stock market.