Gold Mutual Funds Along With Mutual Fund Rankings Can Be A Hedge In Uncertain Time

Posted on Mar 15, 2011 in Gold Mutual Funds | 0 comments

Investing in mutual funds is very common. There are thousands of mutual funds available today, though not all of them are gold mutual funds. Most investors know that to protect themselves from uncertain economic times, investing in gold can be a great hedge. But, it doesn’t have to be gold blocks, it can actually be a mutual fund.

Gold mutual funds are just funds that diversify into various gold companies such as mining companies or companies that make their products from gold. Few of these funds actually invest in actual gold bullion, though there are a few that do. For those that do invest in actual gold, the gold is stored at a bank for safekeeping.

Many times the investor will have the choice of getting their money or taking possession of the actual gold itself. If you think that a gold mutual funds is for you, you will want to check on the mutual funds ranking of several funds before you make your final choice.

Mutual funds are ranked daily on their profit or loss. This ranking is based on past performance over a 1, 3, and 5 year basis. After the overall performance of the fund has been determined it will be assigned a grade from A to E. A is the highest and E is the lowest. Mutual fund rankings are only part of the picture that you need to take into consideration. You also want to research the fund manager of the gold mutual funds you are considering.

Just finding a fund that fits into your investing strategy isn’t enough, the manage also needs to fit. If the manager has a long history of losing money, the odds are not in your favor and no matter how appealing the fund itself may look, it might not be the best way for you to go.

But, if you find a great fund with a proven and successful fund manager than you have just found yourself a winning combination and your chances of getting the results you want have just gone up dramatically.

There are many places online where you can go to find out the mutual funds ranking for whatever mutual funds you are comparing. One of the best is Morningstar Investments.

Their screening tool, Fund Screener, will enable you to search for funds based on their performance ranking. Other screening variables are risk criteria, profit percentage and the rank using the tool Quickrank.

All of these tools can make the mutual funds ranking part of your search, much easier and quicker. When searching for a fund taking all these variables into account will give you the best chance of seeing the results you want from your investment.

Integrating gold mutual funds into your portfolio, now more than ever, can really help you protect yourself against the volatility of the current market. Just make sure you do your due diligence and find the best fund, and the best fund manager for you and your goals.

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