im checking expense ratios, holdings, risk, morningstar ratings, past performance & manager tenure.......these all appear to be within the parameters im looking for...anything im missing?
2006-11-04 15:18:57 · 7 answers · asked by Anonymous in Business & Finance ➔ Investing
I like to look at the valuation ratios of the fund compared to funds in the same category. But make sure you use the same site for comparisons, because different sites will calculate the ratios a little different.
I also like using the Instant X-Ray at Morningstar.
http://portfolio.morningstar.com/NewPort/Free/InstantXRayDEntry.aspx?tsection=toolsxray&dt=0.7055475
You mentined holdings. I like to see what % of the total assets is composed of the Top 10 holding. If it too high, I typically look elsewhere. My personal preference.
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2006-11-04 16:04:06 · answer #1 · answered by Zak 5 · 0⤊ 0⤋
The most important decision is what kind of mutual fund: large value, small growth, international, etc. etc. You might want to check out a good book on asset allocation.
Once you've determined a category like large value, then put all your favorite picks into a morningstar portfolio, customize your criteria for comparison in "my view" and you can compare easily.
The best overall fund companies are Vanguard and T. Rowe Price. If you buy your funds directly from the fund company, you don't have to pay any purchase fees.
2006-11-04 16:19:35 · answer #2 · answered by Yardbird 5 · 0⤊ 0⤋
What part of the market do you want to focus on? Do you want and index fund (something that buys essentially the NASDAQ or Dow Jones) or do you want a sector fund that looks at tech, medicine, green issues? Index funds generally have low expense ratios and have returns that beat or match the total stock market. Sector funds can be riskier because you are focused on on particular part of the market.
Mutual funds are great long term investments. Keep that in mind when choosing them. You may want to break your investments into 4 sectors: total stock market, growth, international and small cap stocks. Hope this helps.
2006-11-04 15:32:17 · answer #3 · answered by jmp_omaha 3 · 0⤊ 0⤋
If you want to get more knee deep into this stuff you could also look at the beta and sharp ratios of these funds, If your in for the long haul i would suggest just buying a market index fund or spider etf. Why try to outdo the market in the long run, more often than not you will not outperform the market.
2006-11-04 15:31:51 · answer #4 · answered by Bryan S 2 · 0⤊ 0⤋
Also look at Exchange-Traded Funds (ETF). They trade like stocks and you avoid the commissions that make the average mutual fund under perform the market.
2006-11-05 12:03:33 · answer #5 · answered by meg 7 · 0⤊ 0⤋
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2006-11-05 00:51:17 · answer #6 · answered by stock.geek 2 · 0⤊ 1⤋