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