| Learn how to select the best no load mutual | | | | consuming aspects of my research is evaluating a |
| funds for your portfolio. | | | | fund’s manager and investment team. |
| Finding the best no load mutual funds is no easy | | | | Portfolio managers should have experience in a |
| task because today’s top funds often | | | | variety of different market environments. The |
| become tomorrow’s worst performing | | | | more experience, the better, provided that the |
| funds and vice versa. As the saying goes, | | | | portfolio manager is not close to retirement. In |
| the faster they go up, the faster they come | | | | addition, the manager and his or her team should |
| down. The temptation for the average | | | | have high quality educational backgrounds and/or |
| person to invest in this year’s best | | | | well-regarded designations. It has been my |
| performing funds is almost overwhelming. | | | | experience that managers with better credentials |
| Unfortunately, investors all too often focus solely | | | | are more successful than managers with lesser |
| on historical performance without considering how | | | | credentials. Further, managers with high quality |
| the fund achieved the superior results or whether | | | | backgrounds seem to have better mutual fund |
| the results are sustainable. | | | | research staffs than lesser-qualified managers. |
| Mutual Fund Research | | | | Investment Approach |
| The better way to perform mutual fund research | | | | You should also probably consider a fund’s |
| is to focus on factors that will stand the test of | | | | investment style and whether it changes over |
| time such as fund expenses as well as the | | | | time. The better funds employ very consistent |
| experience of the fund manager and the depth of | | | | investment approaches that rarely deviate from |
| his or her research team. Expense ratios, which | | | | their stated policies. At the very least, if you are |
| are generally comprised of an investment | | | | invested with a fund with a consistent approach, |
| management fee, a 12b-1 fee and other operating | | | | you will know what to expect in both good and |
| costs, do not typically deteriorate over time. | | | | bad markets. |
| Further, expenses vary considerably and can | | | | Avoid the Media Darlings and Do Your Research |
| sometimes help explain the performance | | | | Investors should try to avoid the high-flying, top |
| differential between the best no load mutual funds | | | | performing funds that often get quite a bit of |
| and the worst no load mutual funds over time. | | | | media attention, but inevitably can never live up |
| This is especially true for fixed-income funds, | | | | to expectations. Instead, investors should go the |
| where sometimes only one or two percent | | | | extra mile and delve into the world of mutual fund |
| separates the best from the worst funds. | | | | research. Mutual fund investing can prove to be |
| Portfolio Manager and Analyst Qualifications | | | | a very lucrative endeavor, but usually only when |
| Even more important to selecting funds that will | | | | you do the necessary legwork. |
| be the best performers for years to come is the | | | | You can click on the following link to learn more |
| background and experience of the manager and | | | | about The Mutual Fund Investor’s |
| his or her investment team. As the publisher of | | | | approach for selecting no load mutual funds. |
| a mutual fund report, one of the most time | | | | |