How to evaluate a mutual fund? How to decide when to sell a mutual fund?

The best way to evaluate a mutual fund is through the Sharpe and Treynor ratios. The higher the numbers the better. When you come across a fund go to yahoo finance and in the risk section on the left you'll find 3,5,and 10 year sharpe and treynor ratios. An example of a mutual fund with a high sharpe and treynor ratio is PRLAX or TREMX. These are emerging market mutual funds and are therefore a bit agressive but the sharpe and treynor take into account not just performance but risk as well. To get more info on the share and treynor just type them into yahoo search with the word defintion. Do one a time of course.

I hope that helps.

first you have to decide whether u want to invest for longer time or shorter time... set a time period .. for a shorter period if the stock goes high consult an analyst whether to sell it .. i would recommend to move on whenever it goes up and invest on new stock ... for long term dont be bothered by the rise and falls of the stock .. for this i think u better choose mutual funds which invest in blue chip companies as they have better chance of maintaining profit every year

1) You don't (That is my job)
2) You don't (That is my job)

One of the way to evaluate a mutual fund is by compare the performence to other mutual funds. When to sell, it a good question, I would follow the manager. If the fund is doing good, all the sudden the manager leaving. It is time to fold that particular fund.