If your willing to take on a little risk, go for a
balanced or asset allocation mutual fund.
@Donald These select picks are in a high risk
catagory.
"The investments don't have to be super safe, but I just wouldn't want to be affected by a recession or crash."
You have to make up your mind. Investments that wouldn't be affected by a crash would have to be super-safe. So safe you'd never get your 4%-6% return.
If you're willing to settle for 4%-6% over the mid-term (say 5-7 years), recognizing that you might have a down year, here are some mutual funds from Fidelity. I'll list the fund, its 1-year return, and its 10-year annualized return:
Select Consumer Select Portfolio
1 year: 8.71
10 year: 11.47%
Select Utilities Portfolio
1 year: 16.80%
10 year: 10.08%
New Markets Income Fund
1 year: 10.96%
10 year: 10.03%
The following are a bit more volatile:
Select Health Care Portfolio
1 year: 35.44%
10 year: 10.07%
Select Retailing Portfolio
1 year: 9.05%
10 year: 12.36
And here's a nice conservative one:
Total Bond Fund
1 year: 5.03%
10 year: 5.39%
Other large investment companies have similar offerings, though Fidelity does have more, so you can fine-tune and tweak your holdings to a greater degree.
Hope that helps.
I'm looking to create a diversified portfolio that returns 4-6%. The investments don't have to be super safe, but I just wouldn't want to be affected by a recession or crash. What investments should I be looking at?
