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Chapter 11. The Name Game—Understanding ... > Searching for the Ideal Investment - Pg. 114

The Name Game--Understanding the Different Types of Mutual Funds 114 · Large capitalization funds--Generally funds with a median market capitalization of more than $7 billion The median market capitalization of the S&P 500 Index, for example, is over $67 billion. The weigh- ted average is almost $113 billion. By definition, there are lots of big companies in the S&P 500 Index. Searching for the Ideal Investment Now that we know the different types of mutual funds out there, how do we decide which ones are the best? And how do you find out about it? Can we look it up in Money magazine or The Wall Street Journal? Do we eavesdrop at expensive country clubs between golf matches? Or do we check out someone else's 401(k) plan? Many investors search for the Holy Grail of investments for a lifetime and never find it. The reason is simple: they're looking in the wrong place. Our advice: Dig for those investment diamonds in your own backyard. You see, most 401(k) plans that have 6 to 10 investments to choose from offer enough selection for anyone to reach his or her financial goal. The reality: Over 90 percent of your total investment return comes from how you allocate your assets (i.e., how much of your money you put in stocks, bonds, or cash) versus which specific funds you choose. So if you're concerned because your 401(k) plan doesn't have an AIM, Fidelity, T. Rowe Price, or Vanguard fund in it, guess what? It really doesn't matter. For What It's Worth