16 Tips about Mutual Funds

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Before investing in a mutual fund, consider its portfolio turnover rate. A fund's portfolio turnover rate measures the frequency with which it buys...
Before buying a mutual fund, think about its volatility. While past performance does not necessarily predict future returns, it can tell you how...
Before buying a mutual fund, scrutinize its fees and expenses. A fund with high costs must perform better than a low-cost fund to generate the same...
Before buying a mutual fund, assess how the fund will impact the diversification of your portfolio. Generally, the success of your investments over...
The hedge-fund industry grew up by preying on the inefficiencies created by the mutual-fund mentality of only departing from a benchmark index...
Many mutual fund holders also suffer from being over-diversified. Some funds, especially the larger ones, have so many assets (i.e. cash to invest)...
Before investing in a mutual fund, know how it will impact your tax bill. The law generally requires a fund to make a capital gains distribution to...
Before buying a mutual fund, ask about recent changes in the fund's operations. Has the fund's investment adviser or investment strategy changed...
Owning a mutual fund that invests in 100 companies doesn't necessarily mean that you are at optimum diversification either. Many mutual funds are...
Before buying a mutual fund, check the types of services offered and fees charged by the fund. Read the fund's prospectus to learn what services it...
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