| Since the mid 1980's, the market of the Mutual | | | | fund managers are forced to invest in many |
| Fund industry has grown continuously. Billions of | | | | different stocks due to the size of their funds. |
| dollars has been invested into the Mutual Fund | | | | Some fund managers are forced to buy poor |
| Industry. Unfortunately, not all of investors make | | | | quality stocks. |
| money. Therefore, it is important for you to | | | | Be Careful Of Fund Overlap: Many investors try |
| study a mutual fund carefully before investing. | | | | to diversify their investments by placing their |
| Here are some tips that can help. | | | | money in different type of funds. Unfortunately, |
| Stay Away From Poor Performance Funds: It is | | | | they will be surprised to know that many stocks |
| important to look at the history of the mutual | | | | held by one fund are also held by the other funds. |
| funds. If it has been bad for awhile, it is probably | | | | Some investors end up investing in the same |
| not for you. The average investor will sell a poor | | | | stocks over and over without knowing. |
| performance fund to find best performing fund. | | | | Investors who have over $100,000 of investable |
| Over-Diversified Funds Are BAD: Mutual funds are | | | | assets should separate their investment accounts. |
| regulated by law to diversify seventy five | | | | Separate accounts allow investors to have |
| percents of their assets. They should not have | | | | greater control over taxes and security. |
| more than five percents of the portfolio in a | | | | Furthermore, these accounts are usually managed |
| single security. As the result of the laws, some | | | | by highly professional fund managers. |