| The best bond funds and best stock funds have | | | | funds a mutual fund company offers. There |
| two things in common. One thing could be | | | | should be numerous stock funds and bond funds |
| excellent investment performance, since you | | | | to choose from. Plus, some balanced funds and |
| invest money in stock funds to get growth and in | | | | money market funds as well. Some funds should |
| bond funds for higher income or dividends. Then | | | | be well established, while others might be but a |
| again, investing is rarely that simple. | | | | few years old. Their largest funds should manage |
| Past performance figures are readily available. | | | | well over $1 billion in assets. You're looking for |
| That's the good news. The bad news is that past | | | | stability and a track record here before you |
| performance is not a good predictor of future | | | | invest money. |
| performance for mutual funds in general. And | | | | While you have the mutual fund info in front of |
| future performance is what you invest money to | | | | you, move on and look for the second thing you |
| get. | | | | need to know to pick the best stock funds and |
| Last year's best performing stock funds can be | | | | best bond funds. Every fund must show you |
| losers when economic or market conditions | | | | what it will cost if you invest money. You can't |
| change, and change is the norm. Bond funds that | | | | predict future performance, but you sure as the |
| pay the highest dividends take risks that many | | | | devil can get a handle on sales charges, fees and |
| investors are not even aware of. For example, | | | | expenses. |
| high yield funds invest in low-quality bonds and are | | | | These numbers are laid right out for you if you |
| often referred to as "junk" bond funds in the | | | | look. For example, one stock fund might have |
| business. | | | | sales charges of 5% that comes right off the top |
| So, what two factors can you get your arms | | | | when you invest money. Plus, yearly expenses |
| around when looking for the best funds to invest | | | | and other fees could nail you for 2% a year. |
| money in? First, look at the reputation and track | | | | Another might have no sales charges at all, and |
| record of the investment company or mutual | | | | have total expenses of less than 1%. |
| fund family that offers and manages a fund. They | | | | Don't throw your money away. High charges, |
| should be well-established and offer a broad array | | | | fees and expenses are NO indication of quality. |
| of funds to choose from. Every fund should tell | | | | The best funds in the country offer low-cost |
| you when it was established in its literature. | | | | investing and a good track record for reputation |
| Ask for free information. Get a guide to all the | | | | and integrity. |