| Mutual Funds are no doubt the best root to | | | | ultimate decision about where you want your |
| enter stock market for a novice Investor but | | | | money invested.Make sure that the actual % |
| some care needs to be taken while chosing a | | | | annual return coincides with the fund |
| mutual fund. You take some time to | | | | manager's tenure. If a new manager was hired |
| investigate thoroughly whether a particular | | | | 1 year ago and the advertisement publishes a |
| fund is right for you or not. Dont just | | | | fantastic 5-year return, the other 4 years |
| Invest in a fund getting tempted by the | | | | were not produced by that manager!It is |
| ratings given in magazines. They are not | | | | always advised to diversify while investing |
| always authentic. There are many factors you | | | | in mutual funds. Example you have 10000 in |
| must see before investing in a mutual | | | | any currency then invest 5000 in two funds. A |
| fund.Always see who is the fund manager of | | | | large group of mutual funds does not |
| the mutual fund and his past track records. | | | | necessarily provide diversification because |
| You will always want to invest in a fund with | | | | the companies whose stocks they hold will |
| a good manager. Since you are essentially | | | | overlap. Use internet resources to pick up |
| turning your money over to someone to invest | | | | high performing funds which have a good track |
| for you, you want to be sure that the manager | | | | results in last five years.Also you must see |
| of the fund has the reputation and experience | | | | whether the mutual fund does well meet your |
| to invest that money well. Also, you want to | | | | short and long term financial needs. Also |
| be sure the manager is open to answering any | | | | choose a mutual fund in which you have a good |
| questions you may have along the way. The | | | | risk tolerance. Mostly all kinds of |
| manager may be in charge of investing in a | | | | investments carry risks of some kind or the |
| mutual fund, but you are in charge of the | | | | other. |