Manage Stock Mutual Funds

If you're looking for fast growth, stock mutual funds are an attractive option. Historically, stocks have performed better than bonds and cash over the long term. But that doesn't mean they're without risk. Investing in stock mutual funds usually requires a lot of buying and selling. The best way to make sure your investment is properly managed is by finding a qualified financial advisor to help you along the way.

Understand Stock Mutual Funds

Learn about stock mutual funds. These types of funds invest strictly in stocks, as the name implies. Stock mutual funds are also known as equity funds.

Discover your options. There are many different types of stock mutual funds for you to choose from. Some of the more popular types include growth, blend, sector and aggressive growth funds.

Choose a Financial Advisor

Admit when you need help. Investing is a risky venture. Inexperienced investors find that consulting with a financial advisor helps them make conscientious, well-rounded decisions.

Consider your financial goals ahead of time. Having a general idea of how you want to invest your money will point you in the right direction when choosing a financial advisor. At the very least, you'll know if you need to consult with a specialist.

Research your advisor. It's a good idea to call your state's licensing boards to make sure you're not being presented with fraudulent credentials.

Prepare a list of questions before your interview. You'll want to cover the specifics, like payment and experience. It's also helpful to come up with a hypothetical scenario to see how your potential advisor would manage the situation.

Tips & Warnings

• Keep in mind that choosing a financial advisor may take some time. You shouldn't rush the process or hire the first person you interview if you're not entirely comfortable with the situation.
• Walk away from any financial advisor who pressures you to invest in funds you're not at ease with. If your advisor is pressuring you to buy, he or she is probably not the best person to manage your portfolio.

By ehow.com