Thank you. Investment is a very personal thing.

Investment is a very personal thing and has much to do with your knowledge, experience and risk tolerance.  

For most of investors, the total stock market index funds are suitable for them since they are highly diversified with low risk.  That is why you will find them in most of 401(k) plans.  

What you have suggested are sector funds which invest in a particular business and it is not diversified and risk profile is high.  But the return is higher than the index funds as well.  Remember, higher risk does not just translate to higher returns, but also could be higher losses.  If you have the experience and higher risk tolerance, the sector funds do generally provide better returns.  

Selecting multiple sector funds for diversification is a way to lower your risk, but if you select all of them, your selection basically become an index fund.  Bottomline, every investor needs to assess his/her risk tolerance before choosing an investment.

If an investor is more experienced and can handld the risk, he/she can invest in individual stocks which is the least diversified and have the highest risk among all the previous two investment strategies.  

所有跟帖： 

• You are probably right in general sense. Index funds are for -偶行偶素- ♀ (931 bytes) () 04/28/2017 postreply 11:18:48

• Usually the company 401K does not provide individual sector fund -花$$$- ♀ (96 bytes) () 04/28/2017 postreply 11:48:54

• In our retirement plan, we have three tiered options to choose: -偶行偶素- ♀ (464 bytes) () 04/28/2017 postreply 12:23:53

• We have first two, no third option. Only can choose the better p -花$$$- ♀ (0 bytes) () 04/28/2017 postreply 12:42:19

• FID and BARON growth are my major holdings except BOND fund -花$$$- ♀ (0 bytes) () 04/28/2017 postreply 12:46:24

• YTD is 9.97% for my whole account -花$$$- ♀ (117 bytes) () 04/28/2017 postreply 12:50:13

• You should thank Trump for this 9.97 performance. -hhtt- ♂ (0 bytes) () 04/28/2017 postreply 13:03:07

• You will curse him when he can not deliver his promises -hhtt- ♂ (0 bytes) () 04/28/2017 postreply 13:04:11

• and the market tanks in later half of 2017, -hhtt- ♂ (0 bytes) () 04/28/2017 postreply 13:04:49

• That means you also think the correction is coming soon, right? -花$$$- ♀ (371 bytes) () 04/28/2017 postreply 13:12:21

• I don't know. If I do, I will be drinking wine with Trump. -hhtt- ♂ (0 bytes) () 04/28/2017 postreply 13:50:03

• That's pretty good. -偶行偶素- ♀ (113 bytes) () 04/28/2017 postreply 16:10:53

• If you have ever changed your job previously, you can open -偶行偶素- ♀ (325 bytes) () 04/28/2017 postreply 16:05:58

• Totally agree. Specially about the last comment. -hhtt- ♂ (0 bytes) () 04/28/2017 postreply 12:13:48

• High five! -偶行偶素- ♀ (0 bytes) () 04/28/2017 postreply 12:32:19