Comments on How to Select a Good Mutual Fund

Don't be fooled by the hottest performers, the best fund returns for three years or the fund that your uncle doubled his money with last year. I recommend reading the 'Getting Going' column weekly in the Wall Street Journal by Jonathan Clements. He lays out sound, simple fundamental advice on mutual funds and it is often contrary to the glitzy advice you see in the money magazines which are funded by the brokerage and mutual fund company ads.

Don't be fooled by the hottest performers, the best fund returns for three years or the fund that your uncle doubled his money with last year. I recommend reading the 'Getting Going' column weekly in the Wall Street Journal by Jonathan Clements. He lays out sound, simple fundamental advice on mutual funds and it is often contrary to the glitzy advice you see in the money magazines which are funded by the brokerage and mutual fund company ads.

What about the fact that you pay a higher total fund expense (i.e. higher management fee, higher 12-b1 fee) to a no-load mutual? The way I see it is, if you're invested for intermediate term-long term, you are better off with CDSC (B-share) funds.

Don't be a fool and invest in Mutual Funds that carry a Sales Load. A Sales Load is simply an added expense the you have to pay a broker or financial planner who is selling you the Mutual Funds. There are plenty of great companies (Fidelity Investments, Vanguard, Scottrade) who will help you choose the best Mutual Funds for you without having to pay the unnecessary charges/expenses associated with loaded mutual funds.

The "% turnover" rate identifies how many times the portfolio's holdings changed. If you're looking at large growth, Harbor Capital Appreciation & White Oak Growth Stock would fit the bill. The former would into the REG and the latter in the IRA.

Make sure that the actual % annual return coincides with the fund manager's tenure. If a new manager was hired 1 year ago and the advertisement publishes a fantastic 5-year return, the other 4 years were not produced by that manager!

Do not select Fidelity service. I am on hold for over an hour to get assistance and I am still holding. Their service is poor. DO NOT use Fidelity at all.

What about the fact that you pay a higher total fund expense (i.e. higher management fee, higher 12-b1 fee) to a no-load mutual? The way I see it is, if you're invested for intermediate term-long term, you are better off with CDSC (B-share) funds.