Lux Investing

What is a good strategy when investing in mutual funds?

Public Comments

1. Regular recurring investments (dollar cost averaging).
2. Diversifying among the different types, not paying over 1% annual fees, and as the first answer said, dollar cost averaging.
3. Diversification! I'd write a huge thing explaining why, but I'm not going to waste the effort because I just end up with a bunch of thumbs downs anyways. Nobody likes diversification. They think it's boring. Please. Trust me. Diversify your portfolio. Do it as much as you can. If you want more information, read this Wikipedia article on modern portfolio theory: http://en.wikipedia.org/wiki/Modern_portfolio_theory
4. It depends on your goals. If you're investing for the short term, try money market mutual funds (money market funds are a type of mutual fund). If you're investing for retirement, consider lifecycle or target date retirement funds. They have a long term focus and are designed to help you save for retirement.