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

---

Small-Cap Stocks: The Beginning of the Journey

When an individual investor wants to roll up his sleeves... Read More

What To Buy?

Now that you have some money burning a hole in... Read More

It Cant Be Done

Wouldn't it be nice if you were only in the... Read More

Shorting Stocks ? The Basics, Part I of II

What does it mean to short a stock?This means that... Read More

Roller Coaster

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

Why Is The Macedonian Stock Exchange Unsuccessful?

The Macedonian Stock Exchange (MSE) is not operating successfully. True,... Read More

High Price/Earnings Ratios and the Stock Market: a Personal Odyssey

After some forty years of banking and investments, I retired... Read More

Trading Tips No 6: The High Cost of Low Cost Stock Market Information

It has been said that low cost or even free... Read More

A Good Fund Manager

Every Wall Street analyst, financial planner and broker will tell... Read More

Why Stock Is More Risky Than Options!

You probably have been told that options are risky. Even... Read More

Buying New Issues

Has your broker been calling you recently with the "great... Read More

Inverted Interest Rates

Inverted interest rates? What's that? Who cares? Even if you... Read More

Cash Is A Position

I go to the Money Show every year to visit... Read More

Is the Stock Market for You?

Many people would like to diversify their portfolios to expand... Read More

The Club

Yesterday I received my monthly issue of MONEY magazine. This... Read More

Gold Fever

Right now there doesn't seem to be any "gold fever".... Read More

Analyst Reports

When you become interested in a stock or mutual fund... Read More

Investing in Stocks and The Game of Monopoly

To begin, you might look at playing the stock market... Read More

Mutual Funds: The Modern Den of Thieves!

Mutual funds were created with the idea that one person... Read More

So, What is This Stock Market Thing Anyway?

We've all heard of the stock market and probably have... Read More

401K-itis

Are you one of those many people who dread reading... Read More

What Does it Take to be a Stock Trader?

It takes a total mental commitment to the task. It... Read More

This Market Is Different

All of the talking heads have been telling us that... Read More

8 Penny Stocks to Avoid

There are many good penny stock investments available, which could... Read More

Is Active Trading The Answer?

One of the main reasons many of us get into... Read More

How to Pick Winning Stocks

There is nothing more exciting than finding an undervalued stock... Read More

More Window Dressing

Two weeks ago I wrote about what the Securities and... Read More

Dividend Paying Stocks

I would like to share with the reader an article... Read More

You Wont Like This

Why? Because I am going to shatter your conventional wisdom... Read More

Losses, not Profits, will Stop You from Trading in the Market

Should the market turn against you, it is important that... Read More

Eternal Sunshine

There is a current movie entitled "Eternal Sunshine of the... Read More

The Surgeon General

The Surgeon General of the United States says that smoking... Read More

The Cub; II

We keep hearing about this bear market and that the... Read More