What questions should we ask before buying mutual funds?

 

• What is the fund's investment objective and strategy?

• What is the fund's historical performance and how does it compare to its benchmark and peers?

• What is the fund's expense ratio and how does it compare to other funds in its category?

• Who is the fund manager and what is their track record?

• What is the fund's asset allocation and diversification?

• What is the fund's liquidity and how easily can shares be bought and sold?

• Are there any restrictions on buying or selling shares of the fund?

• What are the tax implications of investing in the fund?

• What is the minimum investment required?

• Is the fund appropriate for your investment time horizon and risk tolerance?


• What is the fund's risk/return profile and how does it fit with your overall investment strategy?

• Are there any potential conflicts of interest for the fund's management company or its affiliates?

• What is the fund's historical turnover rate, and how does it relate to the fund's performance?

• What is the fund's distribution policy, and how does it impact the fund's returns?

• How does the fund's performance compare to similar funds in its category, over different time periods?

• What are the fund's holdings, and how diversified are they?

• What is the fund's redemption policy, and what are the potential fees for selling shares?

• What is the fund's policy on reinvesting dividends and capital gains?

• Does the fund have any performance-based fees or other incentives for the fund manager?

• Are there any additional services or resources provided by the fund company to its investors?