- Always develop an overall investment plan, including an asset allocation.
- Identify the funds that most closely fit your investment plan and risk tolerance.
- Always read the fund prospectus before deciding to invest.
- Consider long term performance, manager continuity, comparisons to appropriate indices, and measures of risk adjusted performance.
- Socially responsible funds define and measure social and environmental issues differently. Look carefully at the fund prospectus to make sure their approach is acceptable.
- Be fair to yourself: If you can't devote enough time to do the thorough research, consider working with an investment professional.