FYI: Billionaire investor Warren Buffett devoted a substantial portion of his annual letter to deepen his long-running critique of investment fees.
Regards,
Ted
https://www.bloomberg.com/news/articles/2017-02-25/buffett-says-100-billion-has-been-wasted-on-investment-fees

I've got to agree with our Professor. Without more information, naming funds is not particularly productive. (Even limited to blend/growth small cap, tossing out names without knowing the objective is hit or miss.) In addition, tossing up funds without any explanation of why you think it is a good suggestion isn't all that helpful.
Kudos to Crash for adding a little text (and for editing out the original suggestion of MSCFX). I'm curious - since Vanguard small cap index and Vanguard small cap growth are listed, but Vanguard small cap value (VSIAX / VSIVX) isn't, does this imply a suggestion that one lean toward growth, or at least away from value?
Regarding purchasing Vanguard index funds - there are few brokers where you can purchase Admiral class shares outside of Vanguard. (I used to say none, but someone posted otherwise, though I forget where.) So I'm skeptical that you can purchase them for under $10K even in an IRA.
However, you can purchase the ETF class shares with a minimum of one share. VB (for VSMAX) and VBK (for VSGAX). Same ERs, much easier access.
Since we're tossing out random funds, I'll play the game. ASVIX. (Lipper classifies this as small cap core.)
- Solid performance
- Truly small cap ($1.6B average, vs. $1.9B median for small cap funds per M*)
- Fairly diversified (21% in top 10 stocks; some may prefer concentrated funds)
- Stable management (since 2008/2010)
- Not too volatile, relatively speaking (which I consider important for small cap funds that can have wild rides)
- Respectable 2008 (-27.6% vs. -32% for peers, -37% for S&P 500) albeit under old management
- Soft close - the fund is fairly sizeable ($1.6B), but this is mitigated in part by a broad portfolio (100+ securities), and in part by closing the fund to some investors.

Hi @Old_Skeet
As to this article from Dr. Madell; I ask, "and the point is ???".
From the article: " So the data presented below are merely intended to show what might be able to be achieved with some luck, and perhaps, by investing going forward mainly in funds that appear to be undervalued at the time investments are initiated."
>>>A check of a most simple ETF, being VTI; indicates that during the same holding period noted in the article (using the 10-8-2010 start date for a few entries), that VTI had a total return of 128.8% or an annulized rate for this period of 11.25%. For this ETF, $10,000 became $22,880, during the time period in the article.
I didn't find anything in his write that was pointing or leading an investor into a conclusion of what he documented. Perhaps a buy and hold of certain equity/bond funds?
What would be the take away of learning for a new investor attempting to understand more about investing decisions from this article? OR perhaps to rely on "luck" and hoping to understand when an investment is "undervalued". Okay, good luck with all of that.....
My honest 2 cents worth.
Regards,
Catch

psuche98: From U.S. News & World Report here are 677 funds for you to review.
Regards,
Ted
1. Small Cap Growth Funds:
http://money.usnews.com/funds/mutual-funds/rankings/small-growth
2. Small Cap Value Funds:
http://money.usnews.com/funds/mutual-funds/rankings/small-value
3. Small Cap Blends Funds:
http://money.usnews.com/funds/mutual-funds/rankings/small-blend
4. Foreign Small/Mid Value Funds
http://money.usnews.com/funds/mutual-funds/rankings/foreign-small-mid-value
5. Foreign Small/ Mid Growth Funds:
http://money.usnews.com/funds/mutual-funds/rankings/foreign-small-mid-growth:
6. Foreign Small/Mid Blend Funds:
http://money.usnews.com/funds/mutual-funds/rankings/foreign-small-mid-blend

Thanks, johnN.
Not sure why you posted this or where you found it, but the M* ratings are generally positive (3****, 1 ***), and all seem to be above 30%tile over time. Since I have a residual 403b with TIAA , although the university (and business school, I suspect) extorted access to a selection of non-TIAA funds that seemed superior at the time, these do offer the relatively conservative approach that we geezerly baby boomers need with fairly modest expenses. (And, btw, I resent the comment posted a few days ago that "no one under 75 reads newspapers anymore", since i am under 75, and have been known to peruse newsprint relatively often.)
I'll compare the ERs with the non-TIAA funds, but there seem to be some relative winners here.

Just noticed. ON FIRE. +10.92, YTD, 2/23/2017. PRMSX. Don't own it. I do own SFGIX, and it lags PRMSX these days. But look back 5 years: SFGIX wins, hands-down. SFGIX is closed, anyhow. If you're not already in, I'd say PRMSX deserves a look. Eh?

Besides, I want Parnassus to buy small cap stocks for me assuming they are capable. That's what I meant by waiting for them to start one. I don't see one in their line up right now.

I wouldn't hold my breath. Dodson used to run a small cap fund, PARSX, which Parnassus merged out of existence (into PARMX) in 2015.
Another hat tip to Shadow for bringing that info to the board at the time ...

@Edmond

I opened a toe-hold in PARWX several weeks ago -- just to foreclose the possibility it might do a close in the future. I only noticed it after reading some article about it on M*.

FWIW: Six weeks ago, I asked Parnassus about its capacity regarding PARWX AUM, and their response was that they felt they could manage 30B.
I noticed that at EOY they had 5.4% in GILD, and now as of EO Jan., it's 7.2 and its the number 1 holding. I follow GILD closely.
Part of Dodson's annual commentary about PARWX states:
"Quite often, people will ask me why the Parnassus Endeavor Fund has done so well. There are really two sets of answers."
I'll refer to the second answer:
"The other set of issues involves valuation. At the Parnassus Endeavor Fund, we calculate the intrinsic value of a company, and we won’t invest in a company unless the stock price falls to one-third below its intrinsic value. This gives us an enormous margin of safety. Of course, there is always some negative event that causes the stock price to go down so much, so it’s emotionally difficult to invest in a stock after the company has suffered a big setback. That’s why most investors aren’t able to invest, when the stock drops by that much. I admit that it’s also difficult for me to do that, but I’m a pretty even-tempered person most of the time, so I have good control of my emotions. The three steps, then, are (1) knowing enough about finance to calculate the intrinsic value of a company, (2) determining if a company’s difficulties are temporary or permanent and (3) having the emotional wherewithal to invest when the stock is down."
He goes on to say that GILD is an absolute value. Let's hope he's right.

@VF, you can always roll your own, easily.

If I could do that why would I bother being here discussing with you mugs. I have a bullshit meter and I can do ANALysis, but not Analysis. I don't expect to ever buy a stock or ETF as long as I live. And after that I'll appear in nightmares of all who do.
Or maybe Parnassus can hire my elder in 5 so years when she finishes college and she can fulfill my "dream" of having a mutual fund manager in the family....

@VintageFreak: And the sagging continues...

:-D
M* Still has no clue. Shows down 2.83 today. Like Yesterday never happened. BUT YTD it shows it is still 12% up.
Why only FAIRX has this problem on M*. I think M* is waiting to publish a seriously negative comment on FAIRX. They were in love with SEQUX and still are. I think they have had a falling out with Berkowitz especially after they published their analysis. Berko is not happy, and even expressed in last conference call "5 years back M* thought I was great...." etc.
Anyways, like I said, I'm in Vegas and playing with the house's money. So I'm taking a chill pill.

Any of the books by Jason Kelly are good options, too. Very understandable, rational, objective, and actionable investing analysis/guidance for young and old, newbies or experienced alike.
(Disclosure: I've been a 5+ year subscriber to his weekly commentary and have endorsed his latest book)

Credit Suisse Global Investment Returns Yearbook 2017 where graphic resides:
publications.credit-suisse.com/tasks/render/file/index.cfm?fileid=B8FDD84D-A4CD-D983-12840F52F61BA0B4

At the Valeant peak, Valeant was 32% of SEQUX portfolio.
As of 11/30/2016, Freddie and Fannie were 35% of FAIRX portfolio.
These managers took huge bets.

If you stretch your imagination a bit, you'll perhaps discern how my ramblings below relate to the question of whether to hold cash. :)
---
Almost everything I own or track is having a great year based on just a couple months. My four conservative allocation/balanced funds (DODBX, OAKBX, PRWCX, RPGAX) are all ahead 4+% - remarkably close to one another considering that those managers normally take different approaches to markets.
Funds with exposure to gold and other metals are a bit ahead of the pack. Yet, somewhat ironically, refiner-rich PRNEX (which I sold in December) is up exactly 0% YTD. How'd they manage to do that?
Bonds and income-focused funds lag. Price's Equity &Income (PRFDX), once a great fund, is up around 3.4%. Real Estate funds are flat to slightly up. The bump in rates is taking its toll.
We're 8 weeks into the year. A 4% YTD pace for some of these conservative and balanced funds, if sustained, would lead to a roughly 25-26% year. Normally, when something seems too good to be true, it is.

FYI: Below is a chart of the S&P 500 going back two years, with the index’s 50-day moving average and 200-day moving average included. As you can see, the S&P has moved well above both its 50-day and 200-day at this point, and it’s currently trading at the top of an uptrend channel that began forming over a year ago.
Regards,
Ted
https://www.bespokepremium.com/think-big-blog/sp-500-50-day-and-200-day-moving-average-spreads/

Nothing now, but it'll be PARWX on a correction.
I owned PRBLX for years, but sold the last batch about 2y ago. As a fund that's always tried to dip well down into mid and small, the big runup in AUM (over $15B now) has likely been a headwind. It may climb back into the stratosphere of large blend funds next time there's a big correction or bear, though - that's always where it's done the best on a relative basis (see 2008).

Back to multiple paragraphs ago: I don't think DCA into market that is (probably) overvalued is a wise strategy. I read the latest Cinnamond Absolute Investing blog, and I wish I had his millions (so I could feel good about a Starbucks latte, and walking my dog, and not buying any over-valued thing. [He's also a lot younger, so he can get back in the game when values exist.]). And he actually plans to do so. This raises the question: do I save cash; plunge heavily in to any new fund he establishes? I'm pretty sure he will
Perhaps the post suggesting that 2 initial up months guarantees a positive year is correct, but I may be up 8% now (in some accounts) and 2% at Xmas, which makes me positive, but not too happy.
People who take 1% of my money (or more) are isolated from my needs. If their funds decline 5% in a 20% decline (an extremely rare event), I have still lost money, but they trumpet a successful year.
Cinnamond says there's nothing he sees worth buying, and I'm still trying to find stuff to sell.
I'm sure there are multiple individual stocks that will do well as (relatively) desperate managers and individuals buy them, but I hope they are paying dividends.
While happy with my gains, I have to wonder if this another peak at which I should sell. I've missed or ignored all the other, so why should this be different?

Hi @Bobpa
First, hats off to you for the support and guidance for your grandaughter.
This book/link relates to all things in our lives and assuredly to the critical aspect of the psychological/emotional side of investing.
https://www.amazon.com/Power-Habit-What-Life-Business/dp/081298160X
This book/link deals with, in particular, spending habits; which directly relates to the ability to have monies to invest; as well as for "other" regarding too, wants and needs.
https://www.amazon.com/Millionaire-Next-Door-Surprising-Americas/dp/1589795474
This link is for Khan academy, to which your grandaughter likely already has access. Many investment topics are in place at this site. Although this link subject is not directly related to beginning investing.
https://www.khanacademy.org/economics-finance-domain/core-finance/investment-vehicles-tutorial/investment-consumption/v/investment-vs-consumption-1
Lastly, I suggest a search of Youtube. Many investing videos are available, including beginning and understanding through a variety of topics. I find video/graphic presentation to be a happy presentation medium to my brain for intake of the information.
Regards,
Catch

I've held PARMX since 2014. It is a 5 star fund from Morningstar. It has had the same management team since 2008. During that period it has had much better returns with lower volatility than the MB category that it is in. I've been pleased with it.