Mutual Fund Recommendation

    In my Economics class I was asked to look at different index funds to see what would be the best to invest in after doing some research. The reason why people should do this is because index funds are a much safer bet when it comes to your future. Playing the market and actively managed mutual funds can yield some rewards occasionally but in the long run putting your money towards index funds is safer and smarter. So with that introduction let's take a look at what I found.

    Besides vanguard 500 mutual fund I also found Fidelity Select Consumer Staples Portfolio (FDFAX). There is 56 holdings as of 9/30/2020 and the top 10 holdings for this mutual fund are big companies like Pepsi, Coca Cola, Walmart, Costco, etc. These are all big company names that I know many enjoy their goods and services. So saying that I would think that these businesses aren't going to go out of business any time soon and that the demand for their goods and services won't go away in the near or distant future. Even if some of them do it wouldn't affect the bigger picture. For example if Pepsi goes out of business you wouldn't take that big of a hit on your future savings because there are 55 other companies you put money into that aren't closely related. It's a safe bet I would imagine and it's shows to have huge growth over the past decade or so. It's predicted to gave an average annual return of 7.86% in one year, 5.55% is three years, 7.24% in five years and 9.64% in 10 years. It's predicted to always increase and has a safety net if there are any dramatic changes to any market.

    So there is my recommendation, the FDFAX. It's a safe mutual fund in my mind but the economy is unpredictable so who knows what you should personally invest in. Being economically well off  and knowing what to invest in is not just about skill in the market place. It's also about luck. 

Link to FDFAX

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