| You don't have to tell me that investing in the | | | | investing in a mutual fund that focuses on growth. |
| stock market is hard! I've had my fair share of | | | | On the other hand, if you are older and getting |
| losses over the years because of wrong choices | | | | close to retirement age then you are definitely |
| that I've made against my better judgment. It's | | | | going to want to stay away from those same |
| easy to go with your gut instinct and then lose | | | | sort of growth oriented funds and instead focus |
| your shirt because you made the wrong decision. | | | | on something more conservative that deals with |
| The sort of thing keeps many people out of the | | | | income because many older people rely on their |
| stock market and the thus keeps them from | | | | investment portfolio to produce income and thus |
| making decent returns for their retirements | | | | support them during retirement. |
| accounts. | | | | If you have already reached retirement then you |
| One way to invest in the stock market without all | | | | may be interested in the relative safety of bonds |
| of the risk that are often involved in picking | | | | and therefore may look for a good bond mutual |
| individual stocks is investing in a solid mutual fund. | | | | fund or income producing fund. |
| But mutuals are not right for everybody, so how | | | | The next thing yet ask yourself is whether to |
| do you know if they are right for you? That's | | | | invest in a load or a no load fund. A no load fund |
| what I'm going to talk about in this article today. | | | | often makes pretty good sense because load |
| There are many things that influence the future | | | | funds charge upfront commissions and expensive |
| values of any stock in any company. Somebody | | | | liquidation fees down the line. |
| once told me that there are over 100 variables | | | | No load funds, on the other hand, usually don't |
| that could influence the stock. I'm not sure if I | | | | have any commissions at the time of purchase |
| agree with the number 100, but there certainly | | | | and will often allow you to liquidate without any |
| are many things that can go into determining | | | | sort of penalty. Historically speaking the two |
| what the price of the stock should be at any | | | | types of funds have performed relatively the |
| given time. | | | | same so there's no real reason to go with the |
| With so many variables, how can the regular | | | | more expensive of the two which is the load |
| individual investor pick stocks themselves? Many | | | | funds. |
| times they can't and in those cases your best bet | | | | Investing in a mutual fund may be right for you, |
| is to find a good fund, but which one is right for | | | | and if so I advise you to do as much homework |
| you? | | | | as you can about the specific fund that you want |
| The answer will depend on several different | | | | to invest in. Take some time to research the |
| things. For instance, how old are you? If you are | | | | people running the mutual fund and their past |
| younger and you have many many years ahead | | | | record before you invest in any sort of mutual |
| until you retire, then you may be best served by | | | | fund. |