Many people want to know how to compare mutual funds to make the right decision. There are obviously many factors at work here. First of all, you need to determine if investing in this vehicle is right or you.
Generally speaking, a mutual fund is for people who aren’t very financially educated, and really don’t have any time to become so. They are generally for people who want to give their money to a fund manager and have them do the work for them.
If you aren’t financially educated enough to read the financial statements of a company and determine it’s overall financial health, then finding a best performing mutual fund is probably right for you. It is very risky to invest in a stock just based on whether it’s stock price is going up or down.
These investments are divided into two groups based on the choice of how they are acquired. These groups are load and no load funds. No-load funds: The advantage of no-load funds is that 100% of your funds are fully invested from the beginning of the investment.
Loaded funds: The advantage of loaded funds is the addition of professional advice in which category to select for your goals. Important factors in considering if you should invest in a mutual fund should be: