mutual funds: how to buy them?

HOW TO INVEST IN MUTUAL FUNDS

1. Open an Investment Account

2. Assess the fees associated as this will impact your return

3. Determine the initial minimum requirement amount

4. Determine your mutual fund investment strategy

Your portfolio selection should consider your risk tolerance, strategy and age.

Study shows you should allocate in your younger days more into stocks as the market will have time to recover and as you get older more into Bonds for security.

• 20s & 30s: 90% stocks, 10% bonds

• 40s: 80% to 100% stocks, 0 to 20% bonds

• 50s: 65% to 85% stocks, 15% to 35% bonds

5. Research Mutual Funds

Most mutual funds, fail to outperform the market, charge

higher fees than other investments like ETFs and Index Funds

6. As an investor research the fund's goals, strategy, performance, management, and fee structure in its prospectus.

7. Invest at least 10-15% of your income as a minimum