Things You'll Need:
- Prospectus
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Step 1
Set a goal. Before you invest in any mutual fund, determine your goals and your tolerance for risk.
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Step 2
Risk what you can. If you're feeling gutsy and want a high rate of return, invest in the Stratton Monthly Dividend REIT Shares fund. The goal of this fund is to earn cash from dividends and interest. Remember, this fund best suits the short-term investor.
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Step 3
Play it safe. If you want to invest in that distant retirement or your toddler's college education, consider the Stratton Small-Cap Value Fund. This fund takes safe bets with investments that appreciate over time.
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Step 4
Hedge your bets. Maybe you want some big payoffs, but you don't want to risk it all. If so, consider the Stratton Multi-Cap Fund. This fund primarily focuses on long-term growth while keeping an eye on high return rates.
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Step 5
Know the cost. Each fund has a fee to cover the fund's management expenses. This fee is reflected in the net asset value of your share. Stratton's expense is 1.21 percent of the net asset value.
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Step 6
Redeem at the right time. Mutual funds are long-term investments, so when shareholders sell too soon, it costs the fund. Stratton Mutual Funds charges a 1.5 percent redemption fee for shares redeemed within 120 days of the initial investment.
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Step 7
Get a prospectus, which details costs, financial goals and risks. Read it before you invest.
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Step 8
Download an application directly from the Stratton Mutual Funds Web site (see the Resources section below) and fill it out. Mail it along with your initial investment to the Stratton Management Company.
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Step 9
Set up an automatic investment plan. You don't need to stop after your initial investment. With a minimum of $100 per period, you can invest directly from your bank account.
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Step 10
Learn investment jargon by visiting a finance Web site like The Investment FAQ (see Resources below).
