• jebediabartlett 5:01 pm on September 30, 2009

    Two things (at least)…
    One: DIVERSIFY…pick a diversified fund, or get into more than two or three
    Two: Don’t be alarmed by ups and downs…think long term
    Ooops!…okay three: If it’s your life savings or retirement funds…get into at least one that is " blended", "balanced", or " moderate allocation"….meaning it holds a good percentage in bonds.( just a little safety..)

  • DoorWay 5:01 pm on September 30, 2009

    Everything! I would recommend reading up on the various types of mutual funds, the lingo that goes with mutual funds, your options within a mutual fund, your expenses for account managment, tax implications due to they way an account is managed… etc. There is a lot to know. If someone does not have the patience for that… they should know that it is an investment (so it can lose value), they should not put money into a mutual fund they will soon need (long term investing) and watch out for 12b fees and front/back loads.

  • new england 5:01 pm on September 30, 2009

    When looking at a mutual fund, investors should read the fund’s prospectus to understand what they will do with your money. It contains such entries as… minimum investment required, which industry(s) they buy, average holding period, turnover rate, risk (beta), fees they charge, results the fund has had in the past year/3ys/5yrs/10yrs/life, and the actual companies they hold at present, as well as their performances YTD. You should compare similar funds to see if their fees and results are better. Morningstar.com is a great free website for researching funds. The prospectus also tells you how long the fund manager(s) have been in place- longer is usually better.