Buying Mutual Funds

It looks like the market is ready to start up again so it is time to buy mutual funds, but you only want to invest your money in funds that go up. First, you don't want to start with a loss so be sure to purchase no-load mutual funds. There is no need to ever pay commissions as there are several thousand funds that have no commission whatsoever for either buying or selling.

If you talk with a broker he will try to confuse you that a commission fund is better than a no-load fund. He is lying. Find another broker. Also don't pay any attention to who the fund manager is. All big name fund managers have cold periods when their funds go down.

Another thing the "experts" tell you is look at the expense ratios. Nonsense again. Whether it is 1%, 2% or 3% the only thing you are concerned with is is it going up because that is the net figure for your bank account. If you buy a fund at $20/share and it goes to $40/share do you care if the expense ratio is 10%? (It won't be.) The only thing that counts is the bottom line.

Now the most important thing. Which no-load fund? There are several good sources. Go to the library to look in recent back issues of Investor's Business Daily. On the first page of the second section under "Making Money in Mutuals" near the bottom there will be a box listing 25 to 50 funds. You will want to find the top funds for the past 3 months, 6 months and 9 months sometimes in several different issues of the paper. Don't pay any attention to a longer period of time than 12 months. You want funds that are going up now. In the same paper you will find the toll-free phone numbers listed by the names of the funds.

Or if you can use a computer go to www.smartmoney.com. Click on Mutual Funds. Then click on 25 Top Funds. Here you will find another list of the best performing funds for the past year. Most of them are no-load and if there is a load charge it is shown in the Fee column. There are many Internet sources like this if you want to hunt for them.

Call to be sure they have no redemption fees if you decide to sell them in a short period of time. This is important.

With your computer or you can use one at the library I suggest you go to www.bigcharts.com or www.cbsmarketwatch.com to look up each fund by the symbol. You will immediately see why these particular funds are a good buy. They have been going up even when the general market was going down. As long as this upmove continues you will want to own these funds. When they start down you must sell them to protect your capital and your profits. Never stay with a fund that is going down. Brokers will not do this for you. You must be in charge of your own money.

This may or may not be the start of the next bull market move, but if it is this is the right way to buy mutual funds now or any time. (Cut out and save this column.)

Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.

Copyright 2005

al@mutualfundstrategy.com; 1-888-345-7870

---

I Love You, Warren Buffet

Sometime around 1980, can't remember exactly, there was a flight... Read More

The Secret to More Winning Trades is as Simple as Avoiding This Common Mistake

If you're a normal human being, your need to feel... Read More

A Funny Thing Happened on the Way to the Stock Market

On the 40 year journey through the turmoil of a... Read More

Starbucks Stock is Up

Starbucks earnings are up again and so is their stock... Read More

Direction

It is difficult to make money in a bull market,... Read More

Expense Ratios

Mutual funds and brokers are always preaching not to buy... Read More

Complacency

During the month of January the Dow Jones Industrial Average,... Read More

Roller Coaster

I love roller coasters. The steeper the better. High and... Read More

Take The Time

You must take the time once a month to review... Read More

Performance Funds

Mutual funds are doing more and more to discourage investors... Read More

Traders, Defend Against the Dreaded Death Spiral.

It has often been said that there is only two... Read More

The Secret Method to Selecting a Winning Trading System

Every successful trader has a winning system. There are of... Read More

Lights of the Stock Market

There are red lights, green lights, blue lights and spot... Read More

Who Knows?

The Shadow knows. Remember him? It seems a shadow has... Read More

How To Buy And Hold

One of the most believed bits of conventional wisdom from... Read More

Picking Mutual Funds to Outperform the Market

With over 6,000 mutual funds available, it may be tempting... Read More

Dollar Cost Averaging

Dollar cost averaging is one of the most popular ideas... Read More

Forces that Move Stock Prices

Among the largest forces that affect stock prices are inflation,... Read More

Nest Eggs and Omelets

Do you have a nest egg? You know, a place... Read More

Evaluation II

As I said in Part I everyone in the insane... Read More

What the SEC Really Thinks About Mutual Funds!

Let's go into the details of why non-indexed mutual funds... Read More

The Seven Mistakes All Novice Traders Make and How to Correct Them

We learnt the following the hard way! If any of... Read More

Patterns

The Law of Chaos is the theory of random unpredictable... Read More

9 Deadly Trading Mistakes!

The following are a list of nine things you want... Read More

Zero Sum Game

Most people think the stock market is a zero sum... Read More

Dispelling Illusions of the Stock Market

How can you dispel an illusion unless you look directly... Read More

Why Change Funds?

On November 17 I bought 7 different mutual funds and... Read More

Selection Vs Direction

As I have said many times before in this column... Read More

What is a Mutual Fund?

Ever wondered what is a mutual fund? A mutual fund... Read More

Stock Market Insanity

Let's first define insanity. It is doing the same thing... Read More

Investment Attorneys and Garbage Stocks

How is it possible that trash Companies are posting less... Read More

Choosing An Investment Stock Broker

If you want one.And I don't recommend any broker with... Read More

Why the Majority Fail at Stock Investing

The gleam and bright lights of Wall Street lure in... Read More