How much can an average positive mutual fund profit over 3 to 5 years?
Question by Rick L: How much can an average positive mutual fund profit over 3 to 5 years?
I don’t know the first thing about mutual funds but I really wish to learn so that maybe I can earn a little money and be able to afford a house and start a family by the time I’m 25 or 26.
If I were to invest let’s say $ 1000 into a mutual fund for 3 to 5 years, if it ended up being average and good, how much might it turn into?
Best answer:
Answer by Steve D
Average historical returns in the stock market are 8% a year. Since a stock mutual fund would invest in the stock market, the average return would be 8%, so over 5 years, you would make a bit over $ 400.
For good, you might see 10% return, so you are talking probably around $ 550 to $ 500.
Add your own answer in the comments!
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Comments
In 1998 or so one of my mutual funds brought 47%. That was my highest percentage gain on any of my mutual funds ever – since 1984.
These days that kind of profit is not seen I think. For the last two years it has been a disaster with loses in the 40 to 50% range.
I think that if the depression is over that you can earn close to 10% per year on a fund you can leave in for 5 years so you could end up with $ 1610.50
You could also end up with $ 600.00 with a bear market.
I feel like you will actually make more than 10% with a good fund like Fidelity’s Contrafund – FCNTX
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NOTE: I did not report Guadalupe to Yahoo Answers in the post above me but humans cannot do what is claimed for that robot. Humans program robots you know. [/edit]
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