Introduction to Buying Rookie Funds

Colonel Tom Parker had to be one of the smartest people in music history. He knew potential when he saw it. In 1954, Colonel Tom heard a young Elvis Presley singing on Louisiana Hayride, a live Saturday night country music show. He struck up a business relationship with Elvis, snagging some tour dates. Less than a year later, the Colonel took exclusive control of the King's career. The rest is history.

Every mutual fund investor hopes to spot up-and-coming mutual funds and get in on the ground floor of a great new investment. Granted, investing in a new fund is a gamble. Without ratings and a few years of return and risk information as guides, how can you be sure you are getting the Next Big Thing? Nothing's certain, of course, so we suggest you ask the following questions before buying a new fund.