Don't buy a Mutual Fund until you fully understand them.
Many funds have a cost to purchase (called a "LOAD"). 99.999% of the time you're better off with a "no load" fund.
Having the "right" asset allocation is more important than picking the "right" funds".
Don't chase performance.
Don't take "tips" on what to buy. Understand what you're buying, understand the risk & pick your own funds.
Look at the funds performance in 2008. This will give you an idea of the level of risk involved, Most stock funds lost between 25% & 60% in 2008. If you bought at the market high in 2008...... you'd be in a profitable position today.......
Read at least 1-2 books on Mutual Funds.
stocks is an investment in any company, despite an investment in a mutual fund is an investment in more then one different financial papers like mutual funds, shares, or bonds and some other papers that are traded by the big investments firms you can see it sometimes in the fundname by the word hedged. Or in the finnacial report of the fund that there is an investment in those financial papers like a call option or the opposite one, even holding money in cash saving account
read the information of the fund and some funds despite the same name are investing in not the same funds depending on third party and on country
and only invest money you do not need during a term of time for any unexpected outstanding payment
before buying anything the order might affect your finacial position before or after the taxes
You should know that most investors are unable to beat the market and should stick with an index based mutual fund, such as FUSEX (Fidelity Spartan 500 Index Fund), which tracks the S&P 500 index. Read "Investing for Dummies" and the financial columns in your newspaper for more advice. Avoid that Jim Cramer guy on cable TV.
Are there rules or certain things like can't sell if you choose or something like that, that someone should know before they consider them.
