To invest, or not to invest – that is the question. But in the land of opportunities gain and lost, investment is more of the norm rather than the exception. So ditch the excuses and discover the Mutual Fund that is compatible to your goals and dreams. But caution should be observed, hence this checklist before you make that great leap of financial faith.
· Know the rabbit hole
Peek before you jump. Imagine Mutual Fund as a rabbit hole, dark and brooding, an adventure to the unknown. Fortunately, the unknown holds the promise of a secured future – provided you are able to shed some light about this financial instrument.
· Needs over bravado
Gone should be the days when social status dictates the monthly budget. This also applies to choosing your Mutual Fund, where your needs must take precedent over the bragging rights of being a so-called “investor”.
· Money you can forget
It’s time to stop running around in circles and face the nitty-gritty: how much money would you be willing to put in? Rule of thumb: invest on money you are willing to lose, which means that you can forget about it for the meantime, until your fund is ripe for the picking.
· Understand the lingo
In short: stop pretending you understand the brochure or prospectus, because more often than not you really don’t. A wealth of information is available on the Net, like this enlightening article written by a seasoned investor (link to Morillo’s Decoding the Investment Lingo). Remember that the beauty and devil are always in the details.
· Past performance matters
Before you say ‘I invest,’ dig through the past performances of your chosen one. Is the mutual fund company a trusted partner, with a reputation and integrity forged stronger through the years? If yes, then congratulations, we now declare you a mutual fund investor.
