Tips To Selecting the Right Mutual Fund For You
credit: thelastminute
When you’re trying to decide just how to invest your hard-earned and saved money, the options are pretty boggling. If you decide on mutual funds, Joshua Kennon from About’s Investing for Beginners has a few tips that will certainly point you more in the right direction to choose the right mutual fund. Some of his advice includes:
- Go for mutual funds that have a wide diversity of investments
- Check the expense ratio of the fund, and always choose the fund with the lowest expense ratio
- Find out if the fund managers have their own funds invested in the mutual fund - if they do, that’s a good sign
- Buy no-load mutual funds - mutual funds with a sales load are just paying part of your money to someone who gave you advice
- If a mutual fund has a high turnover ratio - that is, it sells its investments regularly and buys new ones - avoid it
- For long term investments - a minimum of ten years - consider investing in index funds
- Do your homework - research the right benchmarks to measure potential funds against, and check all the statistics
- Have a long term perspective - making short term movements of your money will incur expenses and tax liability
Tags: Investing | mutual funds | personal finance | savings
This entry was posted on Tuesday, May 27th, 2008 at 3:30 am and is filed under Investing. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
