FundRobot » Investment Fund » Which one is a better investment?

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Old   #1 (permalink)
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Default Which one is a better investment?

I am planing to put $50K into one of this funds for 2 years. Which one will give me a better return after expenses and fees? Also, will it be too risky to put this much money into any of these funds?

Fidelity Select Consumer Staples FDFAX
Vanguard Health Care Adm (VGHAX)

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Old   #2 (permalink)
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Default Which one is a better investment?

you are the best manager of your money. don't invest a penny in any of these. Research some stocks and invest in a blue chip that pays dividends
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Old   #3 (permalink)
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Default Which one is a better investment?

It's impossible to say which fund will end up giving you a better return as we don't know whether consumer staples or health care stocks will perform over the next 2 years. As a matter of fact, it's entirely possible, even likely, that you will lose money. The stock market is generally only advised if you plan to invest for at least 10 or 20 years. 2 years is not enough time for companies to grow significantly enough to affect the stock price as much as daytraders and speculators. The result is that short term stock price movements (less than 10 years) are basically impossible to predict. You might consider a short term bond fund or money market if you need the money in two years.

That being said, the VGHAX fund has an expense ratio of 0.3% while the consumer staple fund has expenses of 0.86%. Long story short, you will be paying less than half as much in fees with the VGHAX fund. However again, this does not mean that VGHAX will perform better than FDFAX. Good luck!
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Old   #4 (permalink)
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Default Which one is a better investment?

It appears to me anyway, that the Vanguard Health Care fund would be the preferable of the two. Its funds are far less concentrated in just a few issues. The Fidelity fund has more than half its funds in its top five holdings. Additionally, it has large holdings in two tobacco companies. From an investor's point of view this could be problematic because fewer people are smoking, and they are competing over a shrinking pie - and new growth opportunities are going to be hard to come by for them.

That is my take. You should check out the data for yourself at the URL's below. Good Luck.
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Old   #5 (permalink)
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Default Which one is a better investment?

You are taking huge risk putting your money into sector funds. If you can afford to lose that 50k then put your money in those funds and expect to either lose or gain money. I am invested in Vanguard Lifestyle Growth fund and may get out next month because the election will be ending soon and best to get in when the market is way down and sell when way up. I have traded stocks and ETFs, made and lost money.
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Old   #6 (permalink)
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Don't invest money .If you are interested in anyone of business.Before investing money, you should completely analyze that business.
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