Selecting a Mutual Fund
Now that you are familiar with the various types of mutual funds, here are some specific guidelines for picking them.
| Step 1 | Identify the types of funds you need (e. g., growth) to reach your goals |
| Step 2 | Do more reading |
| Step 3 | Do some research on specific funds |
| Step 4 | Determine your selection criteria and eliminate funds |
| Step 5 | Call or write for a prospectus |
| Step 6 | Make your purchase |
| Step 7 | Continually buy more shares |
One of the best ways to grow your investments is to use a dollar-cost averaging strategy-investing a fixed number of dollars (e. g., $50) in a mutual fund(s) at periodic intervals, usually monthly or quarterly. When the price of the fund is low, your dollars buy more shares. When the fund's NAV moves higher, you will buy fewer shares. Although dollar-cost averaging does not guarantee you a profit, in most cases your average cost per share will be less than the current price.
Selecting One or More Mutual Funds
Investors should carefully consider the investment objectives, risks, changes and expenses of an investment company before investing. Your financial consultant can provide you with a prospectus containing this and other important information. Please read the prospectus carefully before investing or sending money.
Investing in mutual funds involves risk. Your principal and investment return in a mutual fund will fluctuate in value. Your investment, when redeemed, may be worth more or less than the original cost.
Basis of Mutual Funds | Fees and Expenses | The Risks of Investing | Advantages of MF | Duties of Mutual Funds | List of Indian Mutual Funds
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