Sunday, January 25, 2009

which mutual funds are right for me?

There are thousands of mutual funds on the market,so it can be a challenge to choose a mutual fund


Fund Type:
Every fund has a particular investing strategy and purpose,you should have a fair understanding of the different kinds of mutual funds.

Example: bond funds, tax-free bond funds, and international funds .Finding a mutual fund that fits your investment criteria and style is absolutely vital; . You must know and understand your investment.

1) Find funds that match your investment objectivesAdjust your portfolio for growth or income.Compare a specific type of mutual fund to others in that same category.

2) What I will invest example: $1,000Based On What I'm investing What I'll have when I sell

3) Buy only from registered advisers:

4) The next step is to determine how much risk you can tolerate

5) What is the current unit price?

This tells you how many units you can buy with your money.

6) Determine how long the fund manager has managed the fund.

7) Time Horizons: Does the investment fit with your expected investmenttime horizon short time or nothow long years example: 5

8) Flexibility: Will you be entitled to switch your investment to other funds inthe same ‘fund family'

9) What fees will I pay?

Fees Sales Fees (Load)When I Sell (Back End)When I Buy (Front End)None (No Load)

10 Fund Performance.

Even tough past performance doesn’t guarantee future returns,but it certanely cangive an idea looking at both long term and short term past performance .

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