Good read on mutual fund investing needed.

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DireStraits
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Good read on mutual fund investing needed.

Post by DireStraits » Fri Sep 16, 2016 10:39 am

New member and first post, so go easy.

I'm sure this question has been beat to death, but I would like some fresh opinions on the matter. I've looked through 4-5 pages of history on this forum and couldn't find a related thread, so I searched the net and got several overlapping answers.

I'm a fledgling investor and an avid reader; I've read enough free information on various financial sites that have brought me to the conclusion that my first investments to be held in a Roth IRA will be index funds. That being said, I'd like to learn all I can about investing in mutual funds, so please recommend a recently written book on the subject that will turn me into a well-rounded mutual fund investor.

Two books that I'm considering are Eric Tyson's Mutual Funds for Dummies and John Bogle's Common Sense on Mutual Funds: Fully Updated 10th Anniversary Edition. Any insight or opinions you could provide on these two books or another book would be appreciated.

Thanks.

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cheese_breath
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Re: Good read on mutual fund investing needed.

Post by cheese_breath » Fri Sep 16, 2016 11:33 am

They're both good reads for a new investor. Head to your library today and check one out.
The surest way to know the future is when it becomes the past.

Jack FFR1846
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Re: Good read on mutual fund investing needed.

Post by Jack FFR1846 » Fri Sep 16, 2016 11:36 am

Check out the Boglehead Wiki
Bogle: Smart Beta is stupid

BlueCable
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Re: Good read on mutual fund investing needed.

Post by BlueCable » Fri Sep 16, 2016 11:39 am

My favorites:
  • Common Sense on Mutual Funds
  • 4 Pillars of Investing
  • A Random Walk on Wall Street
The first is the most focused on mutual funds. The others are great for funds plus philosophy of investing.

You won't go wrong with anything on Taylor's Gems list: https://www.bogleheads.org/wiki/Taylor_ ... tment_Gems

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David Jay
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Re: Good read on mutual fund investing needed.

Post by David Jay » Fri Sep 16, 2016 11:39 am

Jack FFR1846 wrote:Check out the Boglehead Wiki
+1 - There is a wealth (pun intended) of information there. And the price is right.

Bogle's "Common Sense on Mutual Funds" is good. Bernstein's "Four Pillars of Investing" is also great. I picked up 4 Pillars used on Amazon for next to nothing.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

dbr
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Re: Good read on mutual fund investing needed.

Post by dbr » Fri Sep 16, 2016 11:55 am

I like everything written by Larry Swedroe. Rick Ferri on asset allocation would be good too.

Stonebr
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Re: Good read on mutual fund investing needed.

Post by Stonebr » Fri Sep 16, 2016 3:20 pm

Here's a link to the wiki reading list:

https://www.bogleheads.org/wiki/Books:_ ... nd_reviews

Of course, a good Boglehead will go to the public library first. Most of these books will be there. After browsing and reading library copies, you can make an informed decision on which, if any, to buy and use as a long term reference.

My own favorite investment book is Bogle's Little Book of Commonsense Investing. Like many very great books it appears to be elementary on the surface, but is actually quite sophisticated. It distills his investment philosophy into a logical argument that can have only one conclusion -- buy broad market, low cost index funds and hold them for a long period of time. It does not go into the mechanics of mutual fund investing -- NAVs and how they are determined, dividend and capital gains distributions and how they affect your taxes, etc. -- but at a high level, it's all you need to form a successful investment strategy that you can live with for a lifetime.
"have more than thou showest, | speak less than thou knowest" -- The Fool in King Lear

DireStraits
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Re: Good read on mutual fund investing needed.

Post by DireStraits » Sat Sep 17, 2016 8:38 am

Thank you for all the replies.

I started reading the wiki last night; lots of good information there and as suggested, like any good Boglehead, I'll go to the library next week.

pkcrafter
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Re: Good read on mutual fund investing needed.

Post by pkcrafter » Sat Sep 17, 2016 2:50 pm

Can't forget this short online read as a good starter

https://www.etf.com/docs/IfYouCan.pdf

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

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Bogle_Feet
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Re: Good read on mutual fund investing needed.

Post by Bogle_Feet » Sat Sep 17, 2016 4:15 pm

DireStraits wrote: brought me to the conclusion that my first investments to be held in a Roth IRA will be index funds. That being said, I'd like to learn all I can about investing in mutual funds
The reason nobody talks about this is that index funds are better. This is all you need to know about actively managed mutual funds....
"In study after study, year after year, it has been shown that the vast majority of actively managed mutual funds underperformed their [benchmark index funds]" -- Jim Cramer
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Iorek
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Re: Good read on mutual fund investing needed.

Post by Iorek » Sat Sep 17, 2016 4:18 pm

Bogle_Feet wrote:
DireStraits wrote: brought me to the conclusion that my first investments to be held in a Roth IRA will be index funds. That being said, I'd like to learn all I can about investing in mutual funds
The reason nobody talks about this is that index funds are better. This is all you need to know about actively managed mutual funds....
"In study after study, year after year, it has been shown that the vast majority of actively managed mutual funds underperformed their [benchmark index funds]" -- Jim Cramer
Index funds and actively managed funds are both mutual funds.

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