Things You'll Need:
- Prospectus
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Step 1
Know what you want. Before you invest in a mutual fund, consider your goals. How much do you want to save for retirement? Do you need an education fund for your children? Would you like some income generation? Draw up a plan like a pie chart and allocate a percentage of your investment money to each category.
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Step 2
Pick the best out of five mutual funds offered by SunAmerica, which distinctly tailors each fund for different investors.
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Step 3
Get big gains. If you're in the market to make big money, consider the Focused Equity Strategy fund. Divided between small-cap, mid-cap and large-cap portfolios, this fund is 100 percent equity.
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Step 4
Try the Focused Multi-Asset Strategy fund if you don't want to go for broke but still want big gains. This fund is 80 percent equity but still allocates 20 percent to fixed income.
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Step 5
Hedge your bets. If you want to make some cash, but the risk of equity discomforts you, consider the Focused Balance Strategy fund. This fund is safely split, 66 percent equity to 34 percent fixed income.
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Step 6
Play it safe. If you need some high returns but mostly want a long-term investment, try the Focused Fixed Income and Equity Strategy fund. This fund is 66 percent fixed income and 34 percent equity.
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Step 7
Look to the future. Perhaps the thought of an equity fund makes you queasy. If so, try the Focused Fixed Income Strategy fund. This fund focuses on long-term appreciation, and its lack of equity makes it less risky than any other SunAmerica fund.
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Step 8
Download the prospectus once you've chosen the fund that is right for you (see the Resources section below). The prospectus explains the fund's costs, risks and strategies.
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Step 9
Download an application directly from the SunAmerica Mutual Funds Web site.
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Step 10
Relax. Don't let the short-term performance of your fund drive you crazy. It is bound to have its ups and downs, so don't panic. Enjoy the ride.
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Step 11
Visit a helpful financial Web site, such as The Investment FAQ (see Resources below), to review the basics of investing.
