Mutual Fund Checklist for Beginners
There are many ways to select a mutual fund, each one has its own ups, downs, and risks. As you select your first mutual fund, consider these factors:
The fund manager: Often a fund is only as good as its management. If the fund manager has shown great performance in the past, future performance is likely to be above average. If the fund manager has been replaced, past performance becomes less meaningful and may even be worthless. A poor-performing fund that gets a new fund manager may turn around and become a top performer.
The objectives of the fund: Some funds focus on specialty or sector funds (gold funds or biotech funds) and often offer great returns. However, they arent good funds for the online investor who wants to own just one mutual fund. If you own just one specialty fund, you lose the advantage of diversification.
The objectives of the fund: Some funds focus on specialty or sector funds (gold funds or biotech funds) and often offer great returns. However, they arent good funds for the online investor who wants to own just one mutual fund. If you own just one specialty fund, you lose the advantage of diversification.
The objectives of the fund: Some funds focus on specialty or sector funds (gold funds or biotech funds) and often offer great returns. However, they arent good funds for the online investor who wants to own just one mutual fund. If you own just one specialty fund, you lose the advantage of diversification.
Fees: A debate has raged during the last ten years about which is better: no-load or load mutual funds. All the studies indicate that paying a sales commission doesnt ensure a greater return. However, investing in a fund with high fees and high returns is better than investing in a fund with low fees and poor performance. Fees are part of life, investing is no different; fees can also overwhelm you so make sure you understand the fees before you commit.
Fees: A debate has raged during the last ten years about which is better: no-load or load mutual funds. All the studies indicate that paying a sales commission doesnt ensure a greater return. However, investing in a fund with high fees and high returns is better than investing in a fund with low fees and poor performance. Fees are part of life, investing is no different; fees can also overwhelm you so make sure you understand the fees before you commit. - 23208
The fund manager: Often a fund is only as good as its management. If the fund manager has shown great performance in the past, future performance is likely to be above average. If the fund manager has been replaced, past performance becomes less meaningful and may even be worthless. A poor-performing fund that gets a new fund manager may turn around and become a top performer.
The objectives of the fund: Some funds focus on specialty or sector funds (gold funds or biotech funds) and often offer great returns. However, they arent good funds for the online investor who wants to own just one mutual fund. If you own just one specialty fund, you lose the advantage of diversification.
The objectives of the fund: Some funds focus on specialty or sector funds (gold funds or biotech funds) and often offer great returns. However, they arent good funds for the online investor who wants to own just one mutual fund. If you own just one specialty fund, you lose the advantage of diversification.
The objectives of the fund: Some funds focus on specialty or sector funds (gold funds or biotech funds) and often offer great returns. However, they arent good funds for the online investor who wants to own just one mutual fund. If you own just one specialty fund, you lose the advantage of diversification.
Fees: A debate has raged during the last ten years about which is better: no-load or load mutual funds. All the studies indicate that paying a sales commission doesnt ensure a greater return. However, investing in a fund with high fees and high returns is better than investing in a fund with low fees and poor performance. Fees are part of life, investing is no different; fees can also overwhelm you so make sure you understand the fees before you commit.
Fees: A debate has raged during the last ten years about which is better: no-load or load mutual funds. All the studies indicate that paying a sales commission doesnt ensure a greater return. However, investing in a fund with high fees and high returns is better than investing in a fund with low fees and poor performance. Fees are part of life, investing is no different; fees can also overwhelm you so make sure you understand the fees before you commit. - 23208
About the Author:
Learning how to invest is a challege. Knowledge and information is the key to investing and how to invest to profit and minimize risk.
posted by X - Men @ 12:22 AM
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