[cstanifo]

I invested in an INVESCO MID CAP BASIC VALUE FUND for my grandchildren - they each have one -- my question is, is this a good thing, should I keep investing in them or can they lose all that I invested into them depending on the staus of the economy. Also, if I cash these in, will the grandchildren over 18 yrs of age have to pay something or claim something on their taxes?

[ebaines]

First regarding taxes - I assume you have set these accounts up as "Uniform Gift to Minors Act" accounts with you acting as the guardian - right? Any gains or losses that are realized must be reported by the account owner (the grandchild) on their own income tax return, regardless of their age.

As for the choice of investment - since I don't know what other investment the grandchildren may have it's impossible to recommend a particular investment. But I do see that Invesco funds carry a sales load of up to 5.5% and annual expenses of 1.66% Those expenses are outrageous - you should be paying no sales load and no more than 1% annual expenses (even that is high). If you want to stick with an investment in equities then I suggest you find a no-load, low cost index fund - say one that tracks the S&P 500. Check out funds from companies like Vanguard, Fidelity, or T Rowe Price for some excellent choices. And pay particular attention to the fees.

[excon]

Hello cs:

Nobody knows what's GOING to be a good investment, as they ALL involve risk. Even keeping the money in a CD in a bank is not without risk...

Hedging your investments with things that UP when others go DOWN is a good idea too. For me and my grandchildren, that is gold. I buy an ounce coin for them when ever I can. It's a CASH transaction too.

excon