Invest in mutual funds

Author: Luo Lan
Publisher:
Publish Date: 2007-03-01
Features: Introduction Part "What to Do" and "What Not to Do"
Invest most of your money in the stock market.
Do not buy bond funds.
Your investment portfolio should include at least three "core" mutual funds.
Do not buy funds with different fee categories (B-shares, C-shares, M-shares, Y-shares).
If you can only afford one fund, start with one fund.
Do not follow the crowd blindly.
Be skeptical of mutual fund rankings.
Do not pay attention to the name of the fund.
Utilize index funds.
Do not try to predict the market.
Invest in different asset classes.
Do not include asset allocation funds in your portfolio.
Manage your own money.
Do not buy or sell emotionally.
Look at the fund's actual performance.
Do not buy (or sell) a fund based solely on its recent performance.
Seek consistency.
Do not buy high-turnover funds.
Pay attention to income replacement funds.
Do not invest in funds that are too large.
Buy funds from the same fund company or discount broker.
Do not ignore fees.
Consider institutional funds.
Do not rush to buy when a fund is about to close to new investors.
Consider investing in closed-end funds.
Do not ignore SPDRs.
Look for passionate fund managers.
Do not confuse changes in fund prices with investment gains or losses.
Add an automatic investment plan to your asset management.
Do not ignore asset size.
Choose the best value funds from.
Do not confuse various fees.
Read the prospectus carefully.
Do not be misled by the summary prospectus.
Second Part: Fund Basics
Third Part: Risk and Asset Allocation
Fourth Part: Common Sense Strategies
Fifth Part: Resources
Mary Luo, a senior expert at, one of the world's largest financial information providers, is one of the most trusted authorities in the field of personal finance. Her 75 tips are advice from a renowned investment advisor: What kind of funds are right for you, how to easily buy and sell mutual funds, how to better utilize mutual funds, how to measure your risk tolerance, and how to access resources related to mutual funds. Whether you are struggling in the investment field or just starting out, this book's 75 tips will immediately teach you how to use your money more effectively, help you achieve investment success, and win at investing!