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What are a few sites that make it easy to invest in high interest rate mutual funds? (12%+)

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    When you say "interest rate", are you looking for funds that only generate returns from interest, e.g. bond funds? Or are you referring more generally to any fund that is able to generate a rate of return in excess of 12%? In either case, you're unlikely to find funds that can consistently provide such returns. Sep 6, 2010 at 15:18

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If you want a ~12% rate of return on your investments.... too bad. For returns which even begin to approach that, you need to be looking at some of the riskiest stuff. Think "emerging markets". Even funds like Vanguard Emerging Markets (ETF: VWO, mutual fund, VEIEX) or Fidelity Advisor Emerging Markets Income Trust (FAEMX) seem to have yields which only push 11% or so.

(But inflation is about nil, so if you're used to normal 2% inflation or so, these yields are like 13% or so. And there's no tax on that last 2%! Yay.)

Remember that these investments are very risky. They go up lots because they can go down lots too. Don't put any money in there unless you can afford to have it go missing, because sooner or later you're likely to lose something half your money, and it might not come back for a decade (or ever). Investments like these should only be a small part of your overall portfolio.

So, that said...

Sites which make investing in these risky markets easy? There are a good number, but you should probably just go with vanguard.com. Their funds have low fees which won't erode your returns. (You can actually get lower expense ratios by using their brokerage account to trade the ETF versions of their funds commission-free, though you'll have to worry more about the actual number of shares you want to buy, instead of just plopping in and out dollar amounts).

You can also trade Vanguard ETFs and other ETFs at almost any brokerage, just like stocks, and most brokerages will also offer you access to a variety of mutual funds as well (though often for a hefty fee of $20-$50, which you should avoid). Or you can sign up for another fund providers' account, but remember that the fund fees add up quickly.

And the better plan? Just stuff most of your money in something like VTI (Vanguard Total Stock Market Index) instead.

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  • The current yield of Vanguard Emerging Markets fund is 1.09% (finance.yahoo.com/q?s=VEIEX). For a broad stock market index to yield more than 5%, the market has to be seriously distressed (making it of course a great time to buy). The 11% figure you referred to is probably the total return of this fund over some period of time, which consisted of its dividend stream as well as appreciation.
    – Burnsstein
    Jan 2, 2011 at 20:24
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Any investment company or online brokerage makes investing in their products easy.

The hard part is choosing which fund(s) will earn you 12% and up.

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Are you looking for something like Morningstar.com? They provide information about lots of mutual funds so you can search based on many factors and find good candidate mutual funds.

Use their fund screener to pick funds with long track records of beating the S&P500.

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