LYCOS RETRIEVER
Vanguard Mutual Funds
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Valley Forge, Pa.-based Vanguard said it has raised the minimum investment required to open and maintain new individual retirement accounts and custodial accounts for minors to $3,000 from $1,000 on most of its 100-plus mutual funds. The new minimum applies to accounts opened on or after Nov. 1.
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The Vanguard fund family consists of over 100 mutual funds. The largest fund, the Vanguard 500 Index Fund, trades places with the Fidelity Magellan Fund as the largest single fund in the world (nearly $100 billion dollars).
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Not that many years ago, an average bookstore might have had two or three books on mutual funds filed away in the business section. Today, as the number of Americans who invest in mutual funds continues to grow, such books take up several aisles in a section of their own. There are guides for data junkies and mathphobes, books that tell how to make a killing and books that tell how to avoid the coming disaster. A few classics stand above the clutter. Bogle on Mutual Funds is one of them. Now the same author has added another.
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The age-based option offers a choice between the Vanguard mutual funds (The V Fund) and J. & W. Seligman & Co. mutual funds. Eight V Fund options are offered as individual options. The Aggressive Stock Fund divides its investment between the Legg Mason Value Trust and a separately-managed account (NCM Capital's Focused Equity Discipline). The Balanced Fund uses Evergreen mutual funds and a portfolio of Treasury Inflation Protection Securities managed by Wachovia Bank. The Dependable Income Fund uses the state treasurer's short-term investment portfolio. The Protected Stock Fund (now closed to new investments) is invested in a funding agreement issued by MetLife that guarantees principal plus the greater of a minimum annualized interest rate or 70% of the five-year price appreciation, excluding dividends, of the S&P 500 Index.
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Vanguard Mutual Funds are one of the most popular in the mutual fund field. It is highly likely that you will encounter them from time to time while browsing through the mutual fund sources. After a quick check in any dictionary you have available, you will see that "vanguard" represents the troops of an army that are situated in the front lines during a battle.
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All three, two Vanguard mutual funds and a Nuveen closed-end fund, are partly or entirely invested in fixed income securities. Despite providing little opportunity for capital appreciation, they delivered combined returns of around 15% in 2006, only slightly less than the S&P 500 Index ($INX).
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