Start by selecting a fund that feels right. Money magazine and other financial publications offer dozens of funds, analyzed by performance. You can call the fund directly using their toll free number, or you may wish to talk with a stock broker to get her input.
Funds are available with ‘load’ or ‘no load’ options. The ‘load’ funds have a commission of say 5% paid out of your initial deposit. The alternative is to choose ‘no load’ funds. These funds have to pay the brokers, and it is reflected in overall performance. However, most studies comparing the two find little difference in overall performance.
Different funds have different objectives. Some seek growth with a higher degree of risk and little current income. Others will seek dividend income now, but with less risk. Which is best for you? It depends on your overall objective. Do be sure to look at a minimum of five years past performance though. You are interested in long term.
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