Mutual funds can be a great way for individual investors to build wealth. That said, there is a veritable sea of content on the internet about mutual funds – much of varying quality. So, if you’re interested in learning how to buy mutual funds and don’t want to invest a lot of time separating the wheat from the chaff, here is a quick video from eHow on some things to look for when shopping for a fund. Its a bit dry, but the advice is unbiased and solid.
In case you don’t have access to this video, the main points are summarized here:
1. Review the funds 10 year track record. How well your prospect fund has performed relative to its peers?
2. Look at management: How long has the manager been handling the fund? You want a good manager who has been there for a while.
3. What is your funds strategy? Has the fund management stuck to the strategy over time? Is the strategy appropriate for you?
4. Check resources like Morningstar.com to get more information
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