{"id":222813,"date":"2021-04-09T12:03:00","date_gmt":"2021-04-09T09:03:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/how-to-choose-investment-funds-what-to-do-and-what-to-avoid\/"},"modified":"2021-04-09T12:03:00","modified_gmt":"2021-04-09T09:03:00","slug":"how-to-choose-investment-funds-what-to-do-and-what-to-avoid","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/how-to-choose-investment-funds-what-to-do-and-what-to-avoid\/","title":{"rendered":"#\n  How to choose investment funds\u2014what to do, and what to avoid"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3fbf70ee8d8\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3fbf70ee8d8\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/how-to-choose-investment-funds-what-to-do-and-what-to-avoid\/#Three_factors_to_look_at\" >Three factors to look at<\/a><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/how-to-choose-investment-funds-what-to-do-and-what-to-avoid\/#What_to_consider_when_choosing_funds\" >What to consider when choosing funds<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/how-to-choose-investment-funds-what-to-do-and-what-to-avoid\/#1_Keep_growth_in_mind_but_dont_try_to_predict_the_future\" >1. Keep growth in mind, but don\u2019t try to predict the future<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/how-to-choose-investment-funds-what-to-do-and-what-to-avoid\/#2_Minimize_costs_so_they_dont_eat_up_returns\" >2. Minimize costs so they don\u2019t eat up returns<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/how-to-choose-investment-funds-what-to-do-and-what-to-avoid\/#3_Consider_social_impact_if_thats_a_priority_for_you\" >3. Consider social impact if that\u2019s a priority for you<\/a><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/how-to-choose-investment-funds-what-to-do-and-what-to-avoid\/#What_not_to_consider_when_choosing_funds\" >What not to consider when choosing funds<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/buradabiliyorum.com\/en\/how-to-choose-investment-funds-what-to-do-and-what-to-avoid\/#Word_of_mouth\" >Word of mouth<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/buradabiliyorum.com\/en\/how-to-choose-investment-funds-what-to-do-and-what-to-avoid\/#Erin_El_Issa\" >Erin El Issa<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  How to choose investment funds\u2014what to do, and what to avoid<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Three_factors_to_look_at\"><\/span>\n  Three factors to look at<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div class=\"cx--next\">\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000219827\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       <em><em>This <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/article\/investing\/when-choosing-investment-funds-look-at-3-factors-ignore-1?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=anne-stanleymarketwatch-com&amp;utm_content=973468\" class=\"icon none\">article<\/a> is reprinted by permission from <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/blog\/?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=anne-stanleymarketwatch-com\" class=\"icon none\"><em>NerdWallet<\/em><\/a><em>.\u00a0<\/em>This article provides information and education for investors. NerdWallet does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks or securities.<\/em><\/p>\n<p> More than half of Americans (53%) say they\u2019re currently invested in exchange-traded funds, mutual funds or index funds, according to a\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/article\/investing\/do-you-know-what-your-investments-are-most-americans-dont?utm_campaign=ct_prod&amp;utm_content=973468&amp;utm_medium=wire&amp;utm_source=syndication&amp;utm_term=anne-stanleymarketwatch-com\" class=\"icon none\">new NerdWallet survey<\/a>. This same group of respondents shared what factors they consider when choosing investments, and while some are important considerations, others probably shouldn\u2019t be a primary concern.<\/p>\n<div class=\"paywall\">\n       Here\u2019s a look at some practices you may want to adopt in your own investment research, as well as what you might avoid.<\/p>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetDynamic\n            inline\n    scope-web|mobileapps\n  article__inset\n          article__inset--type-InsetDynamic\n            article__inset--inline\n  \"><\/p>\n<div class=\"dynamic-inset-container article__inset__dynamic\">\n<div class=\"infogram-embed\" data-id=\"bb36653c-1b19-4ee2-80a8-19a85df5686d\" data-type=\"interactive\" data-title=\"How investors choose funds\"><\/div>\n<p><script>!function(e,i,n,s){var t=\"InfogramEmbeds\",d=e.getElementsByTagName('script')[0];if(window[t]&&window[t].initialized)window[t].process&&window[t].process();else if(!e.getElementById(n)){var o=e.createElement('script');o.async=1,o.id=n,o.src=\"https:\/\/e.infogram.com\/js\/dist\/embed-loader-min.js\",d.parentNode.insertBefore(o,d)}}(document,0,'infogram-async');<\/script><\/div>\n<\/p><\/div>\n<h6><span class=\"ez-toc-section\" id=\"What_to_consider_when_choosing_funds\"><\/span><strong>What to consider when choosing funds<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h6>\n<h4><span class=\"ez-toc-section\" id=\"1_Keep_growth_in_mind_but_dont_try_to_predict_the_future\"><\/span><strong>1. Keep growth in mind, but don\u2019t try to predict the future<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p> According to NerdWallet\u2019s survey, 44% of Americans who are invested in ETFs, index funds or mutual funds say they choose funds based on future growth potential and 32% choose them based on historical growth. You might compare funds\u2019 past trajectories, but it\u2019s important to understand that past performance isn\u2019t a guarantee of future growth. And rather than try to identify which narrow sector will thrive in the future and invest there, you may want to choose a broad index fund that mirrors the performance of a market index \u2014 like the S&amp;P 500<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"positive\">+0.42%<\/bg-quote><br \/>\n      \u2014 shown to produce returns over a longer time horizon.<\/p>\n<p>Passively-managed index funds and ETFs tend to be low-cost options for those who want a hands-off way to diversify their portfolios.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"2_Minimize_costs_so_they_dont_eat_up_returns\"><\/span><strong>2. Minimize costs so they don\u2019t eat up returns<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>The survey shows that close to 3 in 10 Americans who are invested in ETFs, index funds or mutual funds (28%) say they choose funds based on which ones have low fees. Again, passively managed funds tend to carry lower costs, while actively managed mutual funds might be more expensive since a human advisor is choosing the investments.<\/p>\n<p><strong>Also see:<\/strong> How real estate has performed during the pandemic<\/p>\n<p>When evaluating costs, a major factor to consider is the fund\u2019s\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/blog\/investing\/typical-mutual-fund-expense-ratios\/?utm_campaign=ct_prod&amp;utm_content=973468&amp;utm_medium=wire&amp;utm_source=syndication&amp;utm_term=anne-stanleymarketwatch-com\" class=\"icon none\">expense ratio<\/a>. This is an annual fee expressed as a percentage of your investment. You should compare the expense ratio of the fund you\u2019re considering to that of other similar funds to make sure you\u2019re evaluating it in context. While 1% might seem like a low fee, it could cost tens or even hundreds of thousands of dollars more over time than a fund with an expense ratio of 0.25%.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"3_Consider_social_impact_if_thats_a_priority_for_you\"><\/span><strong>3. Consider social impact if that\u2019s a priority for you<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>About a quarter of Americans who are invested in ETFs, index funds or mutual funds (24%) say they choose funds comprising companies or industries that align with their beliefs, according to the survey.\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/article\/investing\/socially-responsible-investing?utm_campaign=ct_prod&amp;utm_content=973468&amp;utm_medium=wire&amp;utm_source=syndication&amp;utm_term=anne-stanleymarketwatch-com\" class=\"icon none\">Socially responsible investing<\/a>, or SRI, is gaining in popularity and allows investors to choose funds composed of companies doing good in the world, such as promoting racial equality or having sustainable practices.<\/p>\n<p>\u201cDoing good\u201d means different things to different people, but you can start by screening for funds based on factors that matter to you. Remember to check out expense ratios for any SRI funds you\u2019re interested in, as you may find that some have higher fees than traditional funds.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<h6><span class=\"ez-toc-section\" id=\"What_not_to_consider_when_choosing_funds\"><\/span><strong>What not to consider when choosing funds<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h6>\n<h4><span class=\"ez-toc-section\" id=\"Word_of_mouth\"><\/span><strong>Word of mouth<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>According to the survey, among Americans who are invested in ETFs, index funds or mutual funds, 19% say they choose funds recommended by loved ones and 13% say they choose funds discussed in the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>. Even if your loved one is a financial professional or otherwise financially savvy, it may not be a great idea to get investing information from friends and family.<\/p>\n<p><strong>Learn more: <\/strong>How to buy stocks, bonds and mutual funds<\/p>\n<p>Instead, do your own research. Likewise, investments discussed in the media might not be the best suited to your needs. And consider your personal financial goals, risk tolerance and the amount of time you have to invest when\u00a0choosing your investments.<\/p>\n<p><strong>More From NerdWallet<\/strong><\/p>\n<ul class=\"articleList\">\n<li>\n      <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/article\/investing\/how-women-investors-can-rewrite-their-financial-futures?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=anne-stanleymarketwatch-com&amp;utm_content=973468\" class=\"icon none\">How Women Investors Can Rewrite Their Financial Futures<\/a><\/p>\n<\/li>\n<li>\n      <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/article\/investing\/how-many-funds-for-retirement?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=anne-stanleymarketwatch-com&amp;utm_content=973468\" class=\"icon none\">How Many Funds Should I Own to Save for Retirement?<\/a><\/p>\n<\/li>\n<li>\n      <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/article\/investing\/whats-in-etf?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=anne-stanleymarketwatch-com&amp;utm_content=973468\" class=\"icon none\">Are You Sure You Know What\u2019s in Your ETF?<\/a><\/p>\n<\/li>\n<\/ul>\n<p><em>Erin El Issa writes for NerdWallet. Email: erin@nerdwallet.com.<\/em><\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Erin El Issa\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Erin_El_Issa\"><\/span>Erin El Issa<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21005575-02D4-D4B5-4572-D35AB35A0F04%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# How to choose investment funds\u2014what to do, and what to avoid &#8221; Three factors to look at This article is reprinted by permission from NerdWallet.\u00a0This article provides information and education for investors. NerdWallet does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks or&#8230;<\/p>\n","protected":false},"author":1,"featured_media":222814,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-222813","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/222813","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=222813"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/222813\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/222814"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=222813"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=222813"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=222813"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}