ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel
  • »
  • Personal Finance»
  • Investing in Stocks, Bonds, Real Estate, More

Tips to Help You Succeed With Mutual Funds

Updated on February 14, 2012

Mutual funds are a terrific way to invest and have an instant diversification of your money. Basically, t a mutual fund is a pool of money that has been gathered together by a number of different people. Then one person the “fund manager” takes these investments and places them into a variety of different stocks related to the fund's objective. Some fund managers invest only in oil companies, precious metals, or utilities. Mutual funds are terrific for inexperienced investors as well as professional investors to keep a certain amount of money diversified in mutual funds without having to do it individually.

The first thing to consider when investing in mutual funds is getting information about the fund managers. Many fund managers control a wide variety of mutual funds, so if you are going through a common entity for your mutual fund investment it is more than likely this manager will also control that fund. So, getting the right information about your fund manager will help give you the confidence that you need to have when you give them your hard earned money.

You can ask the manager or company to provide you information o your fund manager

1. Education

2. Experience

3. Training

4. Previous Funds performance

The fund manager or firm is someone you are going to need to trust so always look at your managers fund performance in the past and present investments.

Know your fund and the risk tolerance associated with it. If, you are not comfortable with a fund that has wild swings at times it may not be the best investment for you. So, always take a close look at mutual fund prospectus before you invest in the fund. Stay within your comfortable risk tolerance for the best performance of the fund you are choosing.

Having a basic understanding of the workings of the stock market is also essential. Knowing about the funds and stocks that are invested in the fund can help you become a more knowledgeable consumer. If, something a fund manager doesn’t sit well with you ask if he lies to you move on to a different fund. Also if, your fund manager is taking more risk and the returns are not matching up it may be time to find a different mutual fund. So, always keep an eye on the market and at least invest in the knowledge of the basics of stock market investing.

Many funds have a variety of different outcomes as far as fees. There are several different types of fees that mutual fund providers can charge.

1. No load funds – means there are no upfront or back end fees for owning the mutual fund

2. Front-end loads – if you invest 100 dollars in a fund than 5% or 5 dollars automatically goes to the fund manager

3. Back end loads – when you decide to remove your money or sell the mutual fund share then the fund manager will take aheftier percentage based on what your return on the fund was.

So, before you invest make sure you understand the fees that are associated with the mutual fund you are thinking about entering into. Then decide on a cost vs. Return ration whether or not it is worth it if not look for another fund.

Comments

Submit a Comment

  • Golfgal profile image

    Golfgal 6 years ago from McKinney, Texas

    Good basics, trusting the fund managers is the best way to invest. Choose a strategy and stick with it. Some people think buying and selling frequently trying to time the market is the way to go...a very costly proposition. Utility stocks pay good rates.

working

This website uses cookies

As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: "https://hubpages.com/privacy-policy#gdpr"

Show Details
Necessary
HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
LoginThis is necessary to sign in to the HubPages Service.
Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
AkismetThis is used to detect comment spam. (Privacy Policy)
HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
Features
Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
MavenThis supports the Maven widget and search functionality. (Privacy Policy)
Marketing
Google AdSenseThis is an ad network. (Privacy Policy)
Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
Index ExchangeThis is an ad network. (Privacy Policy)
SovrnThis is an ad network. (Privacy Policy)
Facebook AdsThis is an ad network. (Privacy Policy)
Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
AppNexusThis is an ad network. (Privacy Policy)
OpenxThis is an ad network. (Privacy Policy)
Rubicon ProjectThis is an ad network. (Privacy Policy)
TripleLiftThis is an ad network. (Privacy Policy)
Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
Statistics
Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)