2007-01-17 17:19:05 · 7 answers · asked by andrea b 1 in Business & Finance ➔ Investing
Here is a list of considerations. They are the kind of things that a broker or financial advisor will help you with. This can be a bit overwhelming. A good source that does a lot of this work for you is Morningstar. Many library's carry their reports and you can access some of their info on the internet.
First, make sure you are investing in a way that is appropriate for your goals. Do you want/need income, growth, stability?
Second, look at the track record of the funds you are considering. Look at short and long term results and compare them against funds with the same asset class and strategy. Also compare the results to an appropriate benchmark index.
Third, look at the fund managers track record and how long they have managed the fund in question. Is this fund manager responsible for the results of the fund?
Fourth, consider the sales loads or commissions. Do you pay front-end, back-end, or is this a no-load fund? Some funds have great track records even though they have "loads" - don't automatically dismiss them.
Fifth, check the expense ratio of the fund. The standard investment returns already take the expenses into account but most funds will fall in the range of .75 to 1.5% on the expense ratio. This is the amount of the money in the fund that goes to pay the expenses to operate the fund. Commissions and loads pay the broker or salesperson - not the people who run the fund. If the expense ratio is outside of that range make sure you understand why the expenses are so high.
Sixth, look at the minimum initial investment requirement and minimum additional investment amounts. Make sure these are consistant with your investment budget and plans.
Seventh, consider the whole family of funds available. You will have the opportunity to exchange from one fund with the same company to another fund within the same company without paying "loads" a second time. For example, if you already paid a 4% front end load - you can exchange into another fund with a 4% load without having to pay the load again.
Eighth, remember that mutual fund investing is still a long term investment strategy and that they will have ups and downs just like the market does. One of the most effective strategy is to invest a modest amount on a regular basis (weekly, monthly, quarterly) and keep doing it even when the market goes down. No matter what funds look good today, there will be different ones that look good next year, and so on. If you don't believe me, look at last years magazines (business week, money, smart money) and look at their mutual fund picks. In fact go back a couple of years. Try to avoid picking lasts years hottest fund and try to find one with good long term average returns.
Good luck!
2007-01-17 18:54:07 · answer #1 · answered by The answer troll 2 · 2⤊ 0⤋
My recommend (sure I possess mutual finances) is to visit a fiscal adviser. Edward Jones or the like. Unless you're a truly whiz at marketplace developments, and so on. it is exceptional to hear the recommend of an proficient. This doesn't suggest you cannot perform a little study for your possess (you will have to). I endorse constructing a per 30 days fee that is going into the fund, nonetheless a lot you'll be able to. Think of it as a per 30 days invoice and disregard approximately it. The adviser can do all of this for you, you simply signal the papers and it is performed.
2016-09-07 23:05:02 · answer #2 · answered by ? 4 · 0⤊ 0⤋
Mutual funds are like marriage.
Find a good family and do a background check. Make sure the fund has a good performance record.
Janus funds are among the best, others are comparable.
2007-01-17 17:22:57 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You should look at the following:
Fees/Loads - there should be no sales load and the annual fee should be below 1%/year.
Strategy - Make sure it is investing in things that are appropriate for your age, risk tolerance, timeline, etc.
Management - See how long the fund manager has been around and make sure you agree with how he's been running things.
Good luck!
http://www.personalfinance101.org/?utm_source=YH&utm_medium=link
2007-01-18 09:21:23 · answer #4 · answered by personal_finance_101 3 · 0⤊ 0⤋
look for a no load fund,low fees, vanguard has some good funds ,i recommend,the book, mutual funds for dummies ,
2007-01-21 15:35:16 · answer #5 · answered by bozotexino 4 · 0⤊ 0⤋
Low fees are the most important thing.
2007-01-17 18:27:28 · answer #6 · answered by jeff410 7 · 0⤊ 1⤋
Their worst year ever.
2007-01-18 13:08:19 · answer #7 · answered by Anonymous · 0⤊ 1⤋