How to Find Free Mutual Funds Advice

You hear it constantly: one must start investing in mutual funds to have money to send the kids to college, retire at a reasonable age and achieve other financial goals. But what if you have no idea how to even begin? Getting good advice is the key, and getting it free is even better.

Define your financial goals first. Before you even seek advice, it's a good thing to know what your major objectives are. Saving for retirement and amassing capital for a business require different strategies—and probably different mutual funds.

Take a trip to the library. Once you've found out wy you want to invest, it's time to head to your local branch for books that will show you exactly how to invest in mutual funds.

Read and understand as much of these books as you can. They are terrific step-by-step sources that were designed with people like you as their target audience. Don't just rush through to finish them; you'll need to understand the concepts or the process can become frustrating.

Surf the Web for more detailed information. Once you know the basics, try the Motley Fool Web site, The Investment FAQ and the Web sites for industry magazines and newspapers for more particular information. Some of these Web sites are listed in Resources below. Don't forget to take notes or bookmark the sites.

Query your social circle. Chances are there are others who have recently researched or invested in mutual funds. By comparing and contrasting their views, you'll get a better idea of what direction makes sense for you.

Tips & Warnings

• Keep an eye on your local paper for investment seminars held at your local library, for instance.
• You may also find mutual fund advice from your workplace. Some businesses ask their fund managers to speak to employees to better inform them of the funds they offer.
• Be aware of Web sites that may appear objective, but are actually backed by a certain financial institution. They will always have their best interests at heart.
• In a similar vein, be aware of public seminars held by specific mutual fund companies. If you go, just know that you will be steered toward whatever funds they themselves offer.