hey everyone. i've had this idea for a while, but never tested it. basically, what you could do is buy 10 shares in 5 different small cap mutual funds, which all either fail or increase greatly in value. chances are that one or two of these funds will make a lot of money, and go up in value by a decent amount. the diversification of your investment ensures that you will not lose money. all you would need is one fund to succeed. would this work? if not why?
Hi Periwinkle!
In theroie yes it could work. But saying that maybe 2 and best will succeed will leave the other 3 to fail. If your loss is bigger on the 3 than your profit is on the 2 then you will make an overall loss.
-Poppins
(04-12-2010, 02:03 PM)Poppins™ Wrote: [ -> ]Hi Periwinkle!
In theroie yes it could work. But saying that maybe 2 and best will succeed will leave the other 3 to fail. If your loss is bigger on the 3 than your profit is on the 2 then you will make an overall loss.
-Poppins
Well put. I myself have invested and have found that short term investments are rarely good money makers unless you have a LOT of money to invest.
But I don't know much about mutual funds, so I'm probably not the best to take advice from.
It probably could work.....But wouldn't it just get tiring after a while.