| The top mutual funds are funds from mutual | | | | you. Some of the largest fund companies in |
| funds companies that are investor friendly. | | | | America work directly with investors and offer |
| These top mutual funds are actually easy to find, | | | | good service at low cost. In my opinion this |
| and are probably the best investment for most | | | | represents the average investor’s best |
| people. Here’s how to find funds that work | | | | investment. Simply put, all costs associated with |
| for you and give you a performance advantage | | | | investing work to eat away at your investment |
| year after year. | | | | earnings. For example, if you can get 2% |
| | | | | interest a year at the bank, why pay 3% off the |
| The top mutual funds offer you an investment | | | | top and more than 1% a year to earn 5% or 6% |
| advantage year after year and they can prove | | | | in a bond fund? |
| it. These are your best investment if, like most | | | | |
| people, you need help managing your investment | | | | Here’s how to find the top mutual funds that |
| assets. I call them investor friendly simply | | | | are investor friendly with low costs. Start by |
| because they do not charge you an arm and a | | | | going to the internet and searching “no-load |
| leg when you invest money with them; plus they | | | | funds”. These funds have NO SALES |
| offer good service and a broad array of | | | | CHARGES or commissions when you invest |
| investment options. | | | | directly with the fund company. Then go to a |
| | | | | couple of the sponsor sites at the top of the |
| Mutual funds are sold to investors and managed | | | | page. For example, Vanguard, Fidelity and T |
| for them by mutual fund companies or families. | | | | Rowe Price will likely be there. They are large |
| Some market their funds through middlemen and | | | | mutual fund companies. |
| pay professional money managers big bucks to | | | | |
| actively manage their funds in an attempt to | | | | Then go to one of these sites and search for |
| outperform their competitors and/or | | | | INDEX FUNDS. These funds do not actively try |
| benchmarks. Then they pay big bucks to | | | | to beat their competition or benchmark (which is |
| advertise. Who pays for all of this? Put | | | | an index). They simply invest in line with the |
| another way, do you always get what you pay | | | | index to duplicate its performance. By doing this |
| for? | | | | they save on management costs and pass the |
| | | | | savings on to you. Since few funds consistently |
| Since NO mutual fund can prove that it | | | | beat their benchmark, and many perform worse, |
| consistently outperforms its competition, it makes | | | | why take a chance and pay extra for active |
| no sense to look for the top mutual funds based | | | | management? |
| on past investment performance. Middle- men | | | | |
| can cost YOU sales charges of 5% or more off | | | | Check out the EXPENSE RATIO of the various |
| the top when you invest money. Active | | | | index funds a company offers. Since these are |
| professional management and high marketing | | | | no-load funds there are no sales charges, but all |
| expenses and other services can cost you 2% or | | | | funds charge for yearly expenses. For example, |
| more a year to just hold your investment. I | | | | you can find stock and bond index funds with |
| don’t call that investor friendly. No, you do | | | | expense ratios of less than ½% a year. |
| not always get what you pay for. | | | | Basically, that’s your total cost of holding that |
| | | | | investment for a year. A low cost of investing |
| The top mutual funds, in my opinion, work with | | | | gives you higher net profits, and works to your |
| you and not against you by operating efficiently | | | | advantage year after year. |
| and honestly while passing the savings on to | | | | |