Image for Introduction to Methods for Investing in Mutual Funds 106

Introduction to Methods for Investing in Mutual Funds

Once you've got money to invest, you will want to decide whether to invest it all in one sum or in little bits, and on what schedule.

What you will learn

  • Market-Timing Mutual Funds
  • Investing All at Once, or Lump-Sum Investing
  • Why Dollar-Cost Average?

What do you know?

Introduction to Methods for Investing in Mutual Funds

It's hard enough to decide whether or not to invest with an advisor and to commit to a mutual fund style or portfolio goal. In addition, you have to decide how much you want to invest in a fund, and when.

If you're fortunate enough to have money to invest, you'll need to choose one of the following approaches:

  1. Wait to invest your jackpot until your favorite fund cools off or heats up.
  2. Invest the entire wad immediately.
  3. Put a little bit to work at a time.

You should be aware that the route you choose can have a profound impact on your return.