Q:In a recent column, you suggested looking into global growth and income funds. I would appreciate if you can provide some examples of the funds in this category.

J. B. Daruwala, Aventura

First, it's important to understand what a global growth and income mutual fund is, and decide whether the risks and rewards are commensurate with your risk tolerance and time horizon. Then you discuss it with your pension provider or investment firm -- or someone qualified to provide knowledge and advice. Look online for information as well. All mutual fund companies have lots of advice to give. Call them. Even though future performance is not indicative of past performance, as any mutual fund prospectus will appropriately advise you, it's always good to explore to whom you are entrusting your money and what it is costing you. You need to do your homework.

The reason I suggested this type of investment for those interested in the stock and bond markets is because none of us, especially at this time, want to put too many eggs in any one basket. Mutual funds give you the ability to split your investment into many companies at once rather than purchase individual shares of stock yourself.

Although all mutual funds holding stocks (equities) are losing money this year, at least they're still there in your portfolio with the ability to recover when the markets recover. Down but not out. Many individual companies, however, have blown up, and if you owned their stock individually, you've lost most if not all of that investment completely. Never to return. Ouch.

Today, as always, the safer road is the one more diversified. If you have enough money, you can diversify among different types of investments. If you're investing a little, a global growth and income mutual fund might make sense. It invests in large companies around the world.

You're hiring the managers of that fund to decide where in the world to invest, in which specific companies and how. You want them to find value and invest in companies paying solid dividends that you can compound. That will make a big difference to your investment success down the road

So proceed with caution, but do proceed. The world's not coming to an end. And much success in your investments.

Meg Green is a certified financial planner. Mail questions to her c/o Sunday Business, The Miami Herald, 1 Herald Plaza, Miami, FL 33132 or send an e-mail to

askmeg@MiamiHerald.com. Include your full name and city of residence.

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