| While high yield mutual funds typically seek high | | | | money to add to your investment. Always be |
| levels of current income they may also see capital | | | | aware however that high yield bonds may lose in |
| appreciation potential as well, but only as an | | | | slow economic times and you must factor this |
| afterthought. They securities these funds tend to | | | | into your investment plans. |
| become involved with generally have lower credit | | | | Use one of the Mutual Fund rating services like or |
| qualities but they also offer a much higher return | | | | for most of your research. With these services |
| rate and have high volatility tendencies. | | | | you can easily compare the funds that you like |
| High yield means high risk. Before deciding to | | | | against other funds in the same class. Select the |
| invest in high yield funds you must first determine | | | | best funds for your portfolio and either request a |
| your level of risk tolerance and whether the fund | | | | prospectus or download one from online. |
| that you are interested in fit into your investment | | | | Before you decide to invest in any high yield |
| plans. Be very aware that these funds should not | | | | mutual funds you need to do extra research to |
| be your only holding. While mutual funds diversify | | | | make sure that your particular potential for |
| by nature they do tend to fill one particular niche | | | | earning is enough to balance the higher risks |
| or the other. Get the advice of a financial advisor | | | | involved. Mutual funds provide investment |
| which fund is best for your portfolio or if even a | | | | opportunities or investors at all levels of financial |
| group of funds would better meet your financial | | | | involvement. High yield, because of the higher risk |
| need. | | | | may not be for you. If your portfolio cannot |
| Do you want a load or no-load mutual fund? Load | | | | stand a big lose then high yield mutual funds may |
| funds can benefit you from the advice and | | | | not be the thing for you. If can take a larger risk |
| guidance of a financial advisor or broker. No load | | | | with your investment then a higher return could |
| funds don't have a sales charge, giving you more | | | | conceivably be in your future. |