The Advantages and Disadvantages of a Stop-Loss Order Just the Authorization of a Stock Buyback Plan is not Enough

The Age of a Mutual Fund

by
Consider the age and size of a mutual fund before investing. Read the prospectus to find out how long the fund has been operating and the asset size of the fund. Newly created or small funds sometimes have excellent short-term performance records. Because these funds may invest in only a small number of stocks, a few successful stocks can have a large impact on their performance. But as these funds grow larger and increase the number of stocks they own, each stock has less impact on the fund's performance. This may make it more difficult to sustain initial results. You can get a better picture of a fund's performance by looking at how the fund has performed over longer periods and how it has weathered the ups and downs of the market.