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