Learn What Investments are Right for You
Jan 23, 1999. If you are a risk taker at heart and like a fast ride for your buck, look at the
performance funds. If you buy for the long haul and have a nest egg in mind for retirement many years hence, you
should stick with the sound quality growth funds. If you want some current income while waiting for the day you
cash in your shares, you should try to find funds that combine good current income with a potential for growth.
Finally, if income is all important to you and you will settle for little or no growth in the process, bond funds
may be what you need.
For the same reason you choose a mutual fund to diversify your portfolio and thereby spread your
risks, you should not put all of your investment eggs in the same mutual fund basket, either. By avoiding that
trap, you will cut your losses should a fund you are holding undergo a management crisis, lose its magic touch,
or just plain hit a patch of poor luck. But I’ll tell you more about diversification another time.