CHAPTER 7
Mutual Funds— Spreading the Risk 쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆
“If you risk nothing, you risk everything.”
Do I Need to Read This Chapter? • Do I have a basic knowledge of mutual funds, but want to know more? • Is my portfolio properly diversified for my age and investment goals? • Do I understand the difference between load and no-load funds? • How do mutual fund investments affect my taxes? • Have I been double-taxed on mutual funds without realizing it? • Am I aware of the best time of year to invest in mutual funds? • What information can I glean from the daily mutual fund listing in the newspapers?
How Do You Choose a Mutual Fund? n order to choose a mutual fund that is best for you, consider these factors:
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1. Past performance. It is more likely that a fund with a good performance record will repeat its good record than that a company with a poor performance will turn itself around.
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