High Risk Mutual Funds Can Mean High Dividends

Categorized: business, finance | 1 comment

High dividend mutual funds are usually high risk mutual funds. Those who are young, and have time to speculate before retirement can make a great deal of money investing in these funds. They can lose a great deal as well, of course. If the history of the fund is promising enough and the investor young enough, however, the risk may well be worth it. Those who are close to retirement, with little financial cushion, should avoid these high-risk funds.

The best dividend mutual funds are those that have a history of paying off high dividends over at least a ten year period of time. Each fund should have a prospectus available either online or by requesting it from the fund management firm. Several good funds delivered high dividends in the last few years, in spite of the downturn in the economy. These are the ones to consider when seeking a high return on long term investments.

One precious metals fund made nearly 35 percent for its investors in 12 months of 2009 and 2010. Its average gain in the last ten years has been 19 percent. Another fund out of Russia gained over 20 percent each year of the last ten, and jumped a whopping 47 percent this past year. Another fund whose investments are in coal, oil and other natural gas gained more than 13 percent in a recent twelve month period. While that was not spectacular it beat the market considerably. Best of all, its annual performance for the last decade has averaged 18.5 percent.

Three gold funds showed amazing gains in a year of little investment gain for many funds. Respectively, these gains this past year were 30 percent, 24 percent, and a huge 54 percent. The latter is a massive fund, with more than 800,000,000 in assets, and a history of 18 percent annual growth. Clearly, there is money to be made in mutual funds if one carefully studies the decade-long success of each.

Articles of interest include topics: types of investments, how to read a stock chart, stock investing for dummies, best dividend mutual funds, stock market tips for beginners.


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  1. Pingback by Mixture of Madness Brain Trust » Stock tips for new stock aficionados

    [...] Articles of interest include topics: types of investments, how to read a stock chart, stock investing for dummies, best dividend mutual funds. [...]

    on December 20, 2011 at 3:39 pm