Things You'll Need:
- Prospectus
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Step 1
Understand the risks. Though a mutual fund's diverse nature makes it safer than most investments, these funds cannot guarantee to return a profit. You can even lose your investment.
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Step 2
Temper your expectations. Mutual funds are long-term investments, so don't invest hoping to land a big score in a matter of months.
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Step 3
Study the details. Every investment firm has different fees and costs. However, unlike many mutual funds, RS Investments allows for immediate liquidation based on the day's market value.
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Step 4
Read the RS prospectus before investing. This document, which explains the firm's goals and present performance, is available on the RS Web site (see the Resources section below).
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Step 5
Research your fund. It's a good idea to know how well a fund performs before investing in it. You can access annual and semiannual reports of the funds on the RS Web site.
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Step 6
Contact a financial adviser, especially if you're not a seasoned investor. Many financial advisers are relatively inexpensive. Rely on your financial adviser to handle the technicalities of investing in RS mutual funds.
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Step 7
Follow your portfolio. Though one benefit of mutual funds is freedom from most investment responsibilities, you should regularly monitor the fund's performance.
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Step 8
Keep cool. The market continually fluctuates, so if your investment depreciates, don't panic.
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Step 9
Check your facts. To learn more about mutual funds and investing, search online or visit your local library. The Investment FAQ is a great Web site for general investment knowledge (see Resources below).
