The best tool for making mutual fund entry and exit decisions, in my opinion, is simple trend analysis. Mutual funds, being groups of stocks, tend to trend much more reliably and with much less volatility than individual stocks. Yes, there are plenty of exceptions to this rule which will require a broader range of analysis tools, but, as a rule, drawing lines on charts to identify trends, support, and resistance should render exceptional results. We have looked at how timing can be applied to the broad market, industry groups, and individual stocks and mutual funds. We have seen how there is no single timing approach that applies to everything, and that timing methodologies range from the purely fundamental to the purely technical.
Timing is intended to improve returns and reduce risk, a goal to which most people aspire.