Investing Unit 6: Action Steps

• Introduction
• Unit 1: Basic Building Blocks of Successful Financial Management
• Unit 2: Investing Basics
• Unit 3: Finding Money to Invest
• Unit 4: Ownership Investments
• Unit 5: Fixed-Income Investing
• Unit 6: Mutual Fund Investing

• What is a Mutual Fund?
• Why Mutual Funds?
• Advantages of Mutual Fund Investing
• Disadvantages
• Marketplace
• Index Funds
• Cost and Where to Buy
• Find the Right Mutual Fund
• Summary
• Action Steps
• About the Author

• Unit 7: Tax-Deferred Investments
• Unit 8: Investing Small Dollar Amounts
• Unit 9: Getting Help: Investing Resources
• Unit 10: Selecting Financial Professionals
• Unit 11: Investment Fraud

• Study Guide
• Action Steps
• Monthly Investment Messages
• Glossary

Action Steps

Make a list of long- and short-term financial goals so you can match them with an appropriate mutual fund.

Learn about mutual fund investment choices (e.g., stock funds) available through your employer’s retirement plan (e.g., 401(k), 403(b)).

Attend an investment seminar sponsored by Cooperative Extension or finanical services firms.

Contact Cooperative Extension for additional personal finance and investing information, Web pages, fact sheets, etc.

Decide on your selection criteria (e.g., minimum deposit, low expense ratio).

Identify specific mutual funds that match your investment goals.

Call at least three mutual fund organizations for a prospectus.

Do further reading on these mutual funds and mutual funds in general (e.g., prospectus, annual report, books).

Do follow-up research using Morningstar or Value Line and compare at least three mutual funds of the same type for performance, cost, and risk.

Complete a mutual fund application and make an investment.

Track the progress of your fund(s) at least quarterly.