What are the best ways to find the best mutual funds? What are the criteria for the best funds I should look for? Which categories of funds or fund families are the best? These are the most important questions when trying to find the best growth fund or bond. Some of the best mutual fund research sites are: Morningstar (by far the most famous), others are magazine type websites such as Money Magazine, Motley Fool, etc. What is really a high quality fund?
The expense ratio (which is the ratio of what they charge to manage the fund to the total amount invested), a long history of success and, more importantly (in my opinion), how much the fund has is well behaved! For example, during the incredibly disastrous year of 2008, if a fund has not lost more than 10% of its capital or has remained unchanged (whether it is a growth fund or a bond fund), it should then be considered as an all-weather fund. "funds, because the year 2008 is the litmus test of mutual funds of all time, or as they call it now, a" generational low level "in the stock market.
Some analysts and financial experts said that investing in mutual funds was a gamble for birds. I totally disagree. I believe that all investors should have a portion of their portfolio in developed and bonded mutual funds, and a separate portion of their portfolio in a very low cost broker with the best commissions. That way, if you make a mistake on one side of your wallet, you might be right on the other.
Diversification is the key. it has always been and always will be. During the horrific years 2000-2002, not having been diversified in its portfolio and having invested too much in technology funds would have led to huge losses. Starting in March 2000, the stock market began to decline and stopped falling until October 2002. At this point, the NASDAQ rose from 5200 to 1100 and the Dow from 11,700 to 7 200! Not being diverse with this type of losses could have meant the end of your investment career. And the year 2008 has been taught to us all, history repeats itself forever. In my humble opinion, one of the worst mistakes you can make in investing in mutual funds is paying back or back fees. The number one rule of buying a mutual fund is to never pay entry or exit fees. Remember to rebalance your wallet every few months.