Website design By BotEap.comWhat are the best ways to find the best mutual funds? What are the criteria for the best funds that I should look for? Which fund categories or fund families are the best? These are the most important questions when trying to find the best bond or growth fund. Some of the best sites for mutual fund research are: Morningstar (easily the most famous), others are magazine type websites like money magazine, silly motley, etc. As for what really makes a great background? Website design By BotEap.comExpense ratio (which is the ratio of what they charge to manage the fund compared to the total amount invested), a long history of success, and most importantly (in my opinion), how well it has done! to the bottom in bad times! For example, in the incredibly disastrous year of 2008, if a fund lost no more than 10% or stayed the same (regardless of whether that fund was a growth fund or a bond fund), then this fund should be considered a fund.” for all weather.” “, because the year 2008 is the litmus test for mutual funds of all time, or as they now call it, a “Generational Low” in the stock market. Website design By BotEap.comSome analysts and financial experts have been saying that investing in mutual funds is for the birds, a fool’s bet. I totally disagree. I think all investors should have a portion of their portfolio in bond and growth mutual funds, and a separate portion of their portfolio in a very low priced discount broker with the best commissions. That way, if you’re wrong at one end of your portfolio, you might be right at the other. Website design By BotEap.comDiversification is the key; It always has been and always will be. In the horrible years 2000-2002, not being diversified in your portfolio and too invested in technology funds would have meant huge losses. Starting in March 2000 the stock market started to go down and it didn’t stop going down until October 2002. At that time, the NASDAQ dropped from 5200 to 1100 and the Dow dropped from 11,700 to 7200! Not being diversified with those kinds of losses could have spelled the end of his career as an investor. And the year 2008 has taught us all that history DEFINITELY repeats itself. IMHO, one of the worst mistakes you can make when investing in mutual funds is paying an initial or final fee. The number one rule for buying a mutual fund is to never pay an initial or final fee. Also remember to rebalance your portfolio every few months.