Are These Kids' Mutual Funds Advisable?

Best Guide to Mutual Funds

Products

Free Stuff

Sitemap

Fundamentals of Mutual Funds

Mutual fund basics

Mutual Fund Investment

Buy Mutual Funds

Make money in mutual funds

Best mutual funds

Mutual fund analysis

Types of Mutual Funds

Type of mutual funds

No Load Mutual funds

Commodity Mutual Fund

Donor advised mutual funds

Micro cap mutual funds

Closed End Mutual Funds

Bear Market Mutual Funds

Major Exchange Traded Funds

Tax Exempt Bond Funds

Dynamic Mutual Funds

Investment and Money market

Money Market

Understand the risk

International Mutual funds

Mutual Fund software

Important Articles

Top Mutual Fund

Mutual Fund Rating

Balanced Mutual Funds

Kids Mutual Funds

Best Index Funds

Mutual Fund Fraud

Free Newsletter

Stay updated, sign up for our free newsletter to receive useful tips

Full Name
Email Id

Stock Funds

Rate this Article

Excellent

Good

Average

Bad

Terrible

Current Rating

Objective of this fund is capital growth. Invests in shares of various companies that trade on exchanges. This entails higher risk as fund performance is directly tied to stocks in the portfolio, even though returns are higher. There is countless number of variants of stock funds.

Index funds - These funds invest in shares of index companies. They Can be highly volatile. Index companies are those that determine the index of the stock market (example: companies such as those contained by S&P 500 index).
Sector funds - Invests in shares of specialty sectors such as real estate companies, banking companies, auto makers etc. The growth of fund does not depend on the overall economic growth but on the performance of a specific sector.
Hybrid funds - These types of funds invest in both stocks and bonds. The objective is obviously to seize the stability of bond market and the growth potential of stock markets. Relatively low risk profile depending on extent of diversification of fund allocation. Hybrid funds are also called as balanced mutual funds.

Are These Kid's Mutual Funds Advisable?

You may say if other funds are advisable then why not this? Mutual funds for kids are relatively new. The industry is yet to mature as investment avenues. Standard and Poor (S&P) in its last report says most mutual funds have not lived up to their tall claims. When it was examined in the early 2005, it was found that the funds have failed and slipped by 3.6% year-to-date as opposed to 0.92% for S&P 500 over the same period. This is for the second consecutive year that they are falling behind.

Columbia Young Investor Fund/Z (SRYIX) had to even pay up settlement charges of $675 million when faced with allegations of mishandling funds. Not withstanding this, generally, funds aiming to teach investment to children have done a poor show over the review period.

Best Comparison of the Top Mutual Fund Companies
Adhere to social ethics, get socially responsible mutual funds
Trust Balanced Mutual funds for safer investment
Are Index Funds too Expensive to Invest in?
Mutual Fund Scandal - How to Evade it?