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Originally Posted by acehole60
Thanks guys. I knew you had to have a lot of money to invest in a hedge fund, just didn't know it was that much.
I'll look up the mutual fund, mrdasefx, thanks. Would this be better than individual stocks? I know my bank tracks/analyses about 20 danish stocks and could probably give pretty good advise on them. Don't know if it's best to let them take care of it or if I should try with an online broker and for example go with the mutual fund MDLOX and/or other stocks.
It is hard to say man. Everyone has their own preference. I like that particular fund because of the proven performance over a long period of time. There are tons out there and I don't want to sound like I am promoting just that one. I just personally like it.
You pay one time upfront and then its performance is net of expenses so even though they are there you really don't see them. Either you make money annually or you don't. If you start with 15k and buy an A share then you are starting in a 5 percent hole. The A share has the lowest expense ratio anually. You could buy a B share and pay nothing up front but have a higher expense ratio annually for about 6 years then it turns to into an A share. On a B share there is a back end fee if you decide to withdraw so do your own homework on that. B shares have a bad reputation but for something like 15k if you are sure you are holding it long term it would not be a bad deal for you.(I may get flamed for that statement but it is true)
Also the information above is not just for the fund I mentioned but for most mutual funds.
Everyone has their own preferences. If you can buy and hold stocks and feel confident enough to diversify your holdings and evaluate the companies all while keeping a balance of cash and bonds relative to your risk tolerance then by all means it would be much cheaper. I would probably wait until you had more money to start with though.