NEW YORK (MainStreet) Mutual funds are great investments for the younger generation and the new investor because of the diversity it supplies throughout your portfolio. Given that we are generally looking at our investments on a long term scale, there are three prominent sectors for the younger generation to invest in for the future: technology, real estate and natural resources.
These three sectors are very important to have in your portfolio. We are always moving forward with technology as a nation. Analysts say that in the next 10 years, 75% of the current non-technologically advanced equipment will evolve into a form of current technology, which will be very beneficial and less time-consuming.
Real Estate is a great investment for the future. Chart readings show substantial increases in commercial and residential property prices in the last 50 years, and my crystal ball tells me they will continue to grow in years to come. The third sector is the natural resource sector. This sector is believed to have the largest effect on the global economy and hopefully your portfolio. In the near future we will be totally dependent on these natural resources such as wind energy, solar energy, etc., and off of the non-renewable energy we currently depend on.
Here are some mutual funds in the technology, real estate, and natural resource sector that you should keep your eyes on:
-Fidelity Select IT Service Fund (FBSOX) - Holdings include: Visa Inc., International Business Machines, MasterCard Incorporated Common, and computer Sciences Corporation C.
-Red Oak Technology Select Fund (ROGSX) - Holdings include: Alliance Data Systems Corporati, Cisco Systems, Inc., and Northrop Grumman Corporations Co., Google Inc.
-USAA Science and Technology Fund (USSCX) - Holdings include: Cisco Systems, Inc., Microsoft Corporation, Intel Corporation, and Amazon.com, Inc.
-T. Rowe Price Global Technology Fund (PRGTX) - Holdings include: Apple Inc., QUALCOMM Incorporated, Baidu, Inc., and Proofpoint, Inc.
-Fidelity Select Software and Computer Services Portfolio (FSCSX) - Holdings include: Microsoft Corporation, Google Inc., Facebook, Inc., and Visa Inc.
Real Estate sector-
-Baron Real Estate Fund (BREIX) - Holdings include: CBRE Group Inc Common Stock Cla, Starwood Hotels & Resorts World, Brookdale Senior Living Inc. Co, and Capital Senior Living Inc. Co.
-Fidelity Real Estate Income fund (EIIRX) - Holdings include: ProLogis, Inc. Common Stock, Health Care REIT, Inc. Common S, Equity Residential Common Share, and General Growth Properties, Inc.
-Vanguard REIT Index Fund (VGSIX) - Holdings include: Simon Property Group, Inc. Comm, Public Storage Common Stock, HCP, Inc. Common Stock, and Equity Residential Common Share.
-GMO Real Estate Fund (GMORX) - Holdings include: Public Storage Common Stock, Vornado Realty Trust Common Sto, Boston Properties Inc. Common, and AvalonBay Communities Inc. Com.
-Managers Real Estate Securities Fund (MRESX) - Holdings include: Camden Property Trust Common St, Public Storage Common Stock, and Simon Property Group Inc. Comm.
Natural Resource sector-
-Calvert Global Water Fund (CFWAX) - Holdings include: SPX Corporation Common Stock, Flowswerve Corporation Common Stock, Sulzer AG, and United Utilities Group PLC.
-Fidelity Select Chemicals Portfolio (FSCHX) - Holdings include: LyondellBasell Industries NV Or, Praxair Inc. Common Stock, Monsanto Company Common Stock, and FMC Corporation Common Stock.
-RS Global Natural Resource Fund (RSNRX) - Holdings include: Peyto Exploration & Development Corp., Concho Resources inc. Common Stock, First Quantum Minerals Ltd., and Oil Search Limited.
-T.Rowe Price New Era Fund (PRNEX) - Holdings include: Martin Marietta Materials Inc., Southwestern Energy Company Com, Exxon Mobil Corporation Common, and Apache Corporation Common Stock.
-Fidelity Select Materials Fund (FMFAX) - Holdings include: Monsanto Company Common Stock, Ecolab Inc. Common Stock, International Paper Company Company, and FMC Corporation Common Stock.
Mutual Funds are a form of "spreading the wealth," and as they say "Don't keep all of your eggs in one basket." It is very important that mutual funds are incorporated into the portfolios of young investors as a long-term play.
If you are interested in the basic logistics of mutual funds and how they really work, you can view this piece here.
--Written by Max Levin for MainStreet