The internet has opened a world of information and opportunity, never before seen. If we have a question, we can access the net on our smartphones, type in a question, and get an answer. It has taken the concept of immediate-gratification to a whole new level and we have an entire generation that has grown up not knowing what life without the net was like. But, there is a down side to the net. The popularity of ‘blogging’ has created an environment where everyone who can type, thinks they are a writer. Others have created web sites and presented themselves as experts. This has blossomed into a lot of mis-information. So how do you filter through all of the nonsense and find the golden nuggets of truth when you are looking to no load investments?
There is an ocean of information on the internet, however, do not measure all net info as equal. You can scan through some of the web sites and blogs. Most will continually repeat the differences between load and no load mutual funds. Some will sound logical and offer simple common sense. Other sources will encourage a bit more risky investment based on our global future. Reading through these will give you some basic data to start with, but should not be the sole reason for investing.
You can start with the major players in doing your research: Dow Jones and Standard & Poors (S&P) are just two of the most well known. There are about twenty other major investment organizations that have up-to-the-minute information on no load mutual funds. Balance the data on all of the sites and narrow your choices based on the star rating of the no load funds. There are actually some web sites that seem to have done some of the work for you. Be careful, as these may be sites that appear to be open and honest, but actually have a hidden agenda for specific investments.
The star rating of a fund is the ranking that it’s given based on performance and return. Most investment houses will tell you those no load funds with a two or three star rating are high risk. Looking for the five star rating no load funds that demonstrate longevity and good performance is your final goal. Comparing the data from each of your investment sources will narrow down your selections. Do an internet search on the companies, the goals and above all, read the prospectus; even the fine print. Research the corporate members. The internet contains a plethora of information and this includes the good, the bad and the ugly.
A final word of advice. It is your hard earned money. When you make your final selections of no load funds, seek out a reliable investment counselor. By reliable, this means one that will have your investments at heart and not receive additional commissions based on the funds they recommend. The investment counselor can offer experienced information and give you guidance that you may not have been previously aware of.