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I've been taking a look at my retirement account investments recently and realized I have no idea what I should actually be looking for when selecting funds to invest in. I've heard some of the funds charge high fees that should be avoided but I'm not sure what to look for.

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2 Answers

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You should look at Morningstar Ratings. Be careful of loads. I look for young managers cause they are more gung-ho. The old timers like Magellan produce crappy returns and kill what's left with fees.

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Yahoo Fund Screener is a great tool for this. My Suggestion is use the tool to find funds with:

  • A long manager tenure (5 years at least)
  • No Load
  • And a very low expense ratio

There's plenty of good ones out there that fit this criteria so I see no point of paying high fees. Other than this just change the other options to match your risk tolerance etc.. and you're all set.

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Once you find a fund with those requirements, would you say a fund is a fund is a fund? – MrChrister Oct 11 at 17:21
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 For me personally I tend to then look at what the manager is investing in to be sure I feel comfortable with the choices because although I'm not a savvy investor I still like to follow my gut to a certain degree and have done pretty well by that. – sefner♦ Oct 11 at 20:45

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