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3. Figure Out Your Investment Horizon

Your investment horizon is the period of time for which you are expecting to hold on to your investment. This can have a wide range of consequences when you choose to invest in mutual funds. For example, if you have a short investment horizon, you need to remember that mutual funds have sales charges you must factor into your calculations. Likewise, if you have a short investment horizon, you are going to have a smaller amount of available funds to work with. This means a stricter limit on what you can and can't achieve through your investing. Generally speaking, if you want to succeed at mutual fund investing, you should have an investment horizon of at least five years.

investment horizon Mutual funds

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