A personal finance blog dedicated discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance.


Thursday, February 17, 2005

Picking an Actively Managed Mutual Fund

Yesterday's Wall Street Journal's Getting Going column by Jonathan Clements was about choosing the right actively managed mutual fund. In a nutshell, this is what he said:

1. Keep costs low
2. Watch portfolio turnover. The lower the better
3. Pick a fund that doesn't advertise.
4. Pick a fund family that regularly closes funds that have grown to big or become too popular.
5. Pick a privately owned family of funds.
6. Pick a fund family that has limited offerings.
7. Don't just look at past performance.
8. Consider a team-managed fund
9. Stay away from funds with lots of volatility.

That's it. If you want to know more, check out his column.