Mutual Funds Introduction

With yet another year of Canadian mutual fund investors enjoying near double-digit returns, it's tempting to conclude tha making money investing is a breeze. It would seem as though 'anyone' could pick 'any fund' with a half decent history, dump their savings into it and presto - big returns.

Sadly, history shows us that selecting a great fund is not quite that simple.

Sure, the past has been known to repeat itself — but usually it doesn't. Need proof? Remember dotcom stocks? Or how about U.S. homebuilders or income trusts? The reality is, Investing trends are just that - trends.

To differentiate a 'good' fund from a 'lucky' fund, you need to really pull apart a fund's results and recognize the ones that are performing only due to the fact that they made a big bet on a hot sector. In time, one must develop a method by which consistent performers are spotted, and further, have the balance to perform well no matter what the market condidtions - good, bad, or ugly.

Canada MutualFunds.ca is a free resource site for Canadians who want more out of their Investments. We've provided a massive database of investing articles, tips, and suggestions for maximizing your investing dollar.

Happy Investing!