A common way of choosing a <A HREF="http://www.savingcashtips.com/blog/invest-in-mutual-funds/" TARGET="_blank">mutual fund</A> is by following the crowd using today's hot mutual funds. But trying to time your profits and jumping from one performing fund to yet another is just a recipe for catastrophe. When the crowd follows a mutual fund, it's usually one that has hot recent performance and will wind up getting many investors. <BR>
Even though it seems like there are many varieties available for investing, investors actually allocate as much as one-third of their assets which are invested in just 50 funds, with half of those assets invested in the <B>top 100 mutual funds</B>. <BR>
Don't bother buying an <B>equity fund</B> that was yesterday's top fund, because it won't win over time. At least before investing, understand what can go wrong investing in these funds. They might be good funds, but be sure you invest also with an eye to your own diversified portfolio, and not follow the crowd.
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