| What many folks who invest in mutual funds fail | | | | fund that shoots up like a star rocket only to |
| to realize is that while the fund's performance is | | | | explode or come plummeting back to Earth |
| important, more important is the investors | | | | rendering all its pre-celebration investors holding |
| allocation or diversification of the funds they buy. | | | | the bag that popped. |
| Perhaps this is why it is more important to buy | | | | Instead you should concentrate on a killer asset |
| from a strong solid family of funds with a long | | | | allocation strategy. And if you pick the right family |
| standing track record. It is said that 75% of your | | | | of funds, you could even write them all down put |
| portfolio's performance will indeed be from the | | | | them on the wall and use a dart throwing |
| asset allocation strategies employed and not the | | | | strategy and do better than picking independent |
| performance of any of the individual mutual funds | | | | high-performance mutual funds; jokingly suggests |
| that you purchase. | | | | Paul B. Farrell author of "The Winning Portfolio - |
| Perhaps, Peter Lynch, investment guru | | | | Choosing Your 10-Best Mutual Funds." |
| extraordinaire would concur with me on this, as | | | | Understanding your risk level is very important |
| he has made a note of this in his many books on | | | | too, and if you stick with your risk aversion |
| investing. When picking funds it is advised to be | | | | criteria and a good strong family of funds, maybe |
| weary of the stock of the week, but that also | | | | two and pick within those, with diversification in |
| goes for the "Mutual Fund of the Month!" too. | | | | mind, you will do much better over time than you |
| There is nothing more common than a small cap | | | | might have believed. Please consider all this. |