Most of us are confounded on how to choose quality funds and how the hell do we decide that? Let me state at the outset that I do not personally believe in indexing in this market and in the future (just see where you'd have been with a SnP 500 index tracking fund). My rule of thumb while choosing funds for my 401K has been no-load, no transaction fee, low expense ratio, minimal to low early redemption fees, <=5K initial purchase requirement, and then performance going from 3 year, 1 year, 1 month. So I present a list of funds for your consideration. I will not post all such funds I track restricting myself to 5 right now with a short commentary on the risk/rewards, volatility and anything else I see fit. Here goes.
RYVNX : Rydex double inverse Nasdaq 100. What a way to start right...an index fund :) The reason I like this is it's one of the few ways to hedge your portfolio in a down market. Note..shorting is not a good long term strategy so use it judiciously and mostly to protect potential losses in other funds
GAAEX : Guinness Atkinson Alternative energy fund. It got whipped 7.4% yesterday so definitely a volatile fund. And very very focused! But I like the sector a lot although it sports high P/E's.
LSBRX : Loomis Sayles Bond Fund. It's not a "safe" bond fund since it's mostly in corporates and not all are investment grade bonds. But the management is almost the best around so definitely something to think about for high interest income while tolerating some risk.
CGMFX : Ken Heebner's CGM Focus Fund. This has also got smashed recently and that's because Heebner makes big bets and holds only 25 stocks at most! But I'd argue he's the best manager around and he has delivered before.
UNWPX : A very focused precious metals fund, investing in miners and the like. I really like this sector especially after the way it's been pummelled recently.
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