European Stars And Stripes (Newspaper) - May 30, 1987, Darmstadt, Hesse                                Choosing the right Mutual fund today s crossword new Yorac times usual funds used to be the easy Way Oul or investors. But with about 1,850 funds to pick ram these Days choosing the right fund is As Tough As choosing the right Stock. You can Start by consulting Yow broker financial planner of vocal newsstand business magazines periodically carry extensive rankings of Mutual funds. Or you can subscribe to specialized investor newsletters which claim to provide belter advice. How should you assess a fund s performance it is reasonable to assume that a fund with a Long consistent track record will continue to succeed. Jus be sure to look far enough into the past. The last five years have been spectacular ones in the Stock and Bond markets so most Mutual funds have Sterling five year records. If you look at a 10-year history however you will get an idea of How the fund has performed in bad times As Well As Good. I also look at the the latest 12 months results said Gary Goldberg a financial planner in Suffern. . A fund with an excellent Long term record May have gotten too big to move quickly in today s markets or it May have a new portfolio manager who had nothing to do Wilh the past  you can find top per former in both Load and no Load funds. Load refers to a sales commission. When you buy through a broker or planner and pay a full Load 8.5 percent of your Money goes to the seller. That s 1850 on a $10,000 investment since Only $9.150 of your monay is invested in stocks or Bonds you need a return of Over 9 percent just to recoup the Load end get even. All of your Money goes to work for you in a no Load fund but both kinds of funds charge annual fees for managing your investment and Over Iha years some High Lee no loads turn out to be More expensive than Low fee Load funds. A sales Load May be Well spent if your broker helps you select the right fund find out How much research went into the decision. And ask Why that particular fund was chosen Tor you. If you Are willing to do your own research end evaluation you Are probably better of with a direct Purchase of a no Load fund. But Don t buy a fund just because it is Toad or no Load. Find out instead How your Money win la invested. Here Are four general categories 9 equity fund. These focus on stocks and generally aim for appreciation rather than current income. Some growth and income funds buy stocks Hal pay dividends to provide some yield but their upside potential May be modes funds that invest instead in Small companies and turnaround situations Are More speculative and aimed at achieving maximum capital gains. Specially funds. These funds buy specific typos of stocks. They May be one Industry funds utilities retailing or International funds Iha invest in Over As companies. Precious metals funds which invest mainly in Gold mining stocks have their own category. Specially funds often Are More volatile because they ack Lio diversification of Basic growth funds. It is no Accident that last year s biggest winners and losers were both specially funds Nomura Pacific Basin had a 74.5 percent gain acco Rufing to business week. Fidelity select electronics return minus �3.9 percent. Bond fund. Bond funds outsold Stock funds 3 to-1 last year As investors voted for current income. Corporales governments and tax exempts Are the three main categories. Corporate Bond funds including Jurtik Bond funds generally have the highest pre tax yields. Government funds including the extremely popular Ginnie Mae funds Are safer but lower yielding. Tax exempts Are strictly for High bracket investors. Bond funds Are further divided into those that hold Short medium and Long term securities. The longer you go out the higher your yield and the greater your exposure to loss of principal if interest Rafes Rise. Bond funds Are supposed to be less volatile than Slock funds. Nevertheless. Lipper analytical services reports that total returns on fixed income funds last year ranged from 54.42 percent Benham target 2010 to 0 26 percent integrated corporate investors. Balanced funds. Holding Bolh stocks and Bonds these funds aim for a greater current return than Stock funds have and More growth than Bond funds offer fund s that hold convertible Bonds and preferred stocks have similar objectives. To learn where a particular fund fils into this matrix ask for a prospectus and an annual report the prospectus Stales the fund s Aims. The annual report lists the issues in the fund s portfolio. Some fund operator manage funds of All types including Money Market Mutual funds. These operators offer investors the privilege of switching among their funds with just a Telephone Call. Telephone switching is so widespread these Days that a number of Mutual fund newsletters specialize in making recommendations about when and where to switch. Most of the newsletters come out monthly. Some Oiler Telephone update services. To find out which newsletters Oiler what consult some business publications switch advisor newsletters advertise heavily there. Subscriptions Are not cheap some Cost More than $135 a year. But Many newsletters will oblige you if you request a Sample copy. Not . The Pakher de ques to we o4nin. 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