How to Find the Best Performing Mutual Funds

The best performing mutual funds can add diversity to anyone's portfolio; that is, instead of buying stock in one company, you are spreading your investment around in many companies. Another benefit is that the group of stocks in which you are investing is compiled by an expert fund manager whose job depends on the performance of his fund. One of the negative aspects of mutual funds is that you have to pay the professional fund manager with the fees that are charged to the mutual fund. These fees can take a chuck out of the money that you make. Before you invest, in even the best performing mutual funds, you should take a few minutes to consider the fees that are associated with the fund.

Difficulty:

Moderately Easy

Instructions

1. 

   One great resource for finding the best performing mutual funds is Morningstar.com (check out the link below). This site has a ton of free information, and the best performing mutual funds are grouped into categories that you can browse through to find the fund that is the best fit for you. The categories of the best performing funds are all listed down the left side of the website.

2. 

   The next great site that I use to find information about the best performing mutual funds is MSN's Money website (check out the link below). Like Morningstar, this page offers a lot of valuable information about the best performing mutual funds; however, where this site really shines is in their Expert Picks section. This section of the website provides great mutual fund research by allowing you to look over the shoulder of a professional mutual fund picker while they manage a portfolio of mutual funds in real time!

3. 

   The final resource that you might want to draw on to find more information about the best performing mutual funds is your own brokerage. I know this sounds obvious, but online brokerages often make a ton of information available to their customers that many people never take advantage of. Check out the website of your online brokerage for any tips that they have to offer.

Tips & Warnings

• Always take a funds fees into consideration before making your decision. The fees are usually listed as "expense ratio", so look for the expense ratio, and remember, the lower the number, the better it is for you.

Resources

• morningstar
• msn money