Financial markets author Michael D. Sheimo explains how to select mutual funds in a U.S. context. His advice is useful - find out what the performance has been, sniff around for unregistered funds that pay out high returns to early contributors with later contributors' money via Ponzi schemes, and so on. Many of Mr. Sheimo's points are valid, but should have been developed further. Almost always, this is true. But there are sector funds whose stocks march to the same drummer, gold funds that are only barely diversified, and style funds whose range of assets means less than their management philosophy.
Diversification is only one reason to buy mutual funds.
Strategy of fund management is at least as important. The value of Mutual Fund Rules is as an introduction to mutual fund investing with a special view to U.S. funds. The experienced investor will find it of limited use, however . Globe Interactive, a division of Bell Globemedia Publishing Inc. Protected by copyright. All rights reserved.