Are Mutual Funds Right for You?

How to tell if investing in mutual funds is right for you?

Whether you should invest in mutual funds or not can be determined with respect to one aspect - Your Investment Objective:

You should invest in mutual funds because you are convinced that it is one of the best ways to beat the long term average returns of guaranteed investments such as GICs or government bonds.

You should not consider investing in mutual funds because:

Your friends are doing it and you don't want to miss out

Many investment books say that mutual funds are a good investment

Newspaper articles state that mutual funds are the hot investments of the 1990's

Mutual funds will make you rich quick

You want to try it for a few years and see how it goes

If you are considering investing in mutual funds because of those previous reasons, you should not invest in mutual funds. After all, mutual funds are for long term investment.