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Fund Spy

Two Things to Consider Before Picking Funds

Think about your goals, and learn about market history.

Is a Morningstar mutual fund analyst really telling you that other issues are more important to consider than deciding which mutual fund to own? Yes.

Many investors spend too much time thinking about individual mutual funds and too little time thinking about more important investment questions such as their goals and overall asset allocation. Two such issues should take precedence over the consideration of specific funds. Only after you've addressed them should you begin thinking about which funds are appropriate.

Know Your Goal
Before coming to Morningstar I worked as a financial advisor, and I was amazed by how many clients just "wanted to make money" but couldn't articulate a specific goal for the money they were investing.

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