How do I choose a winning mutual fund?

Morningstar is a nice resource, but remember it is strictly backwards-looking analysis. Kiplingers is OK but is biased towards no loads. (There is a recent study out in the Journal of Financial Planning {October, 2005} that challenges the idea that index funds always outperform actively managed funds.

Here's what I start with when looking for a fund to fill an asset category:
Performance relative to peers
Asset size (Avoid the bloated funds)
Manager Tenure (Great 5 & 10 year numbers mean little if the manager has only been there for 2 years)
Fee structure

The important thing to remember is to allocate your assets in a manner in line with your time horizon and risk tolerance and DON'T CHASE PERFORMANCE. This years winners are not usually on the top of the heap next year.

It is never a bad idea to consult a financial planner, either.

Thank you for noticing! I always try to be fair and open minded. At the risk of shamless self-promotion, you can find more useful info on my website: www.acanthusassociates.com Report It

You need to decide for yourself what you want from your investments. Some people want an investment that gives them a chance to make a huge amount of money, whereas some people want something that will provide slow but virtually assured growth.

Go to Morningtar's website, go look at some issues of Kiplinger's Personal Finance magazine, and learn what's right for you.

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