Mutual Funds; I am interested in learning on how to invest on MF. Any suggestions?

Question

I have approx $2000 to invest and I'm considering on MF. I appreciate any feedback. Thanks....

Answer 1

I have only one advice.... forget it, there is much better.

When you buy a mutual fund you pay an entry fee, often an exit fee and money is taken from the fund as manager fee. In exchange you have to count on the expertise of the manager to do better than the stockmarket to compensate for the money you lost on fees. Admittedly there *are* funds that do better and have even stellar performance. But they are rare and they are difficult to find.

You can do much better by investing in Exchange-traded funds (or ETFs). Like mutual funds they are open-ended collective investment schemes. But the difference is that they are traded as shares on most global stock exchanges. Typically, ETFs try to replicate a stock market index such as the S&P 500, a market sector such as energy or technology, or a commodity such as gold or petroleum. As they are index link there management fees are much smaller than those of MFs. And because they are traded as shares, you only pay broker's fees which are also much lower.

Answer 2

It's a good idea to get a basic understanding of investing, and for a novice, it's better to do some reading on it prior to making the investment. A good "Dummies" book on it is called "Investing For Dummies", and Amazon.Com has it at the below link. Good luck to you.

Answer 3

visit the following websites for indepth learning to execution knowledge:
For US:
http://moneycentral.msn.com/investor/research/fundwelcome.asp?Funds=1

For India:
icicidirect.com
moneycontrol.com
easymf.com