How to Select a Good Mutual Fund
- 1). Decide what percentage of your money you will allocate to mutual funds. If you'll be investing less than $15,000 to $20,000 overall, many investors advise that all of your investments should be in mutual funds.
- 2). Determine how many mutual funds you will invest in. Three to five funds is generally considered an adequate amount of diversification.
- 3). Decide whether you'll deal directly with the fund manager or use a broker.
- 4). Diversify the funds you buy in terms of the size of the companies in their portfolios and the businesses that those companies are in.
- 5). Choose high-performance funds by using Internet resources and newspapers to pick those funds that have had the best performance over at least the last three years.
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