Mutual Funds: How To Pick A Good Mutual Fund
Lesson summary:
To identify a suitable mutual fund or money manager, there are several key success factors to consider. Firstly, ensure that the investment strategy employed makes sense to you and is explained in simple terms without the use of complex jargon. Secondly, reputation for integrity is crucial, especially when investing in mutual funds from larger institutions rather than lesser-known ones. Thirdly, investing in value stocks with long-term growth potential is recommended over technical investing. Additionally, investing with someone with a long-term track record of at least five years and a consistent approach that aligns with your interests is important. Lastly, it’s recommended to invest alongside a manager who invests a substantial majority of their own money in the same fund.