Financial Security

Investing in mutual funds is a great way to add diversity to your portfolio. You can be invested in the stock market for a minimum price and not have to follow and invest in individual stocks.

However, keep a few things in mind when considering mutual fund investing.

• Mutual funds are not guaranteed or insured by the FDIC or any other government agency — even if you buy through a bank and the fund carries the bank’s name. You can lose money investing in mutual funds.

• Past performance is not a reliable indicator of future performance. So don’t be dazzled by last year’s high returns. But past performance can help you assess a fund’s volatility over time.
• All mutual funds have costs that lower your investment returns.

This entry was posted on Wednesday, May 14th, 2008 at 7:42 pm and is filed under Mutual Funds. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.