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Step 1
Since 403(b) plans are limited to mutual funds (rather than individual stocks), look for no-load mutual funds. (No-load funds don't charge fees for buying or selling.)
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Step 2
Determine your risk tolerance. Are you a risk taker or a more conservative investor?
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Step 3
Use your risk tolerance to drive your 403(b) fund choices. If you are an aggressive investor, consider sector funds (e.g., technology). If your tolerance for risk is moderate, look at growth funds, and growth and income funds. For the conservative investor who wants to sleep well, bond funds or balanced funds (a mixture of stocks and bonds) may make the most sense.
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Step 4
Utilize the financial section of a newspaper, or the Internet, to track and monitor the performance of any fund you are considering.
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Step 5
Assess a fund's past performance, fees and expenses, risk rating, and manager before making a decision.










