{"id":438,"date":"2023-07-15T02:30:06","date_gmt":"2023-07-15T07:30:06","guid":{"rendered":"https:\/\/forexrainbow.com\/how-to-tell-if-a-mutual-fund-is-safe\/"},"modified":"2023-07-15T02:30:06","modified_gmt":"2023-07-15T07:30:06","slug":"how-to-tell-if-a-mutual-fund-is-safe","status":"publish","type":"post","link":"https:\/\/forexrainbow.com\/how-to-tell-if-a-mutual-fund-is-safe\/","title":{"rendered":"How to tell if a mutual fund is safe"},"content":{"rendered":"<p><\/p>\n<div>\n<p>In recent years, more and more people have invested in one <strong>mutual fund<\/strong>.<\/p>\n<p>According to the<strong>Annual observation of mutual fund investors<\/strong> Edited by the research agency Assogestioni, presented in May 2023, Italian families invest <strong>520 billion euros<\/strong> in mutual funds.  However, with the market offering so many options, it&#8217;s important that you know how to determine if a mutual fund is safe before investing in it.  But first, let&#8217;s look at what a mutual fund is.<\/p>\n<h2 id=\"cos-e-un-fondo-di-investimento\">What is a mutual fund?<\/h2>\n<p>A mutual fund is a financial instrument similar to a large piggy bank that pools the resources of small and large savers.  It is managed by a management house or money manager that invests in different asset classes.  By buying into a fund, i<strong> Savings are invested in hundreds of companies<\/strong>making the underwriter less dependent on the success or failure of a single company and creating a diversified portfolio.<\/p>\n<h2 id=\"toc-6-consigli-per-verificare-se-il-fondo-di-investimento-e-sicuro\">6 tips to check if the mutual fund is safe<\/h2>\n<h3 id=\"toc-1-verifica-la-reputazione-della-societa-di-gestione\"><strong>1. Check the reputation of the management company<\/strong><\/h3>\n<p>Be sure to research the company that manages the fund and learn about their history, experience and reputation in the industry.  Before making an investment, it is important to be certain of the company&#8217;s ability to manage and protect savings.<\/p>\n<h3 id=\"toc-2-esamina-il-rendimento-storico-del-fondo\"><strong>2. Look at the historical performance of the fund<\/strong><\/h3>\n<p>Analyze the fund&#8217;s past performance and see if it has met consistent return targets over time so you can get an idea of \u200b\u200bthe manager&#8217;s track record.  While past performance is not an indication or guarantee of future returns, it can still give you an indication of the fund&#8217;s strength.<\/p>\n<h3 id=\"toc-3-controlla-i-costi-e-le-commissioni\"><strong>3. Check costs and fees <\/strong><\/h3>\n<p>Before you invest, you should be aware of the costs associated with the fund.  Management fees, admission fees, performance fees, exit fees, etc. may apply.  Make sure these fees are transparent and in line with industry norms.<\/p>\n<h3 id=\"toc-4-valuta-la-diversificazione-del-portafoglio-del-fondo\">4. Evaluate the fund&#8217;s portfolio diversification<\/h3>\n<p>A safe fund is generally well diversified, meaning it invests in different asset classes, sectors and geographical regions.  There <strong>diversification<\/strong> helps reduce risk by spreading investments across multiple asset classes, countries, sectors and better risk management.<\/p>\n<h3 id=\"toc-5-controlla-se-il-fondo-e-regolamentato-e-autorizzato\">5. Check if the fund is regulated and licensed<\/h3>\n<p>Make sure the fund is authorized and regulated by the relevant jurisdiction, such as the Consob in Italy or the CSSF, the Luxembourg Consob.  Regulation offers investors additional protection.<\/p>\n<h3 id=\"toc-6-leggi-attentamente-il-prospetto-d-offerta\">6. Read the offering prospectus carefully<\/h3>\n<p>It is important to read the product sheet carefully, which describes the fund&#8217;s investment objectives, associated risks, costs, management strategies and yield distribution policy.  This document contains important information to help you assess whether the product is suitable for your needs and risk level.<\/p>\n<p>Bottom Line: Understanding whether a mutual fund is safe requires some research and evaluation.  In any case, always remember to consult a financial advisor before making any investment decisions.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>In recent years, more and more people have invested in one mutual fund. According to&#8230;<\/p>\n","protected":false},"author":1,"featured_media":439,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-438","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-forex-orders"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to tell if a mutual fund is safe - forexrainbow<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/forexrainbow.com\/how-to-tell-if-a-mutual-fund-is-safe\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to tell if a mutual fund is safe - forexrainbow\" \/>\n<meta property=\"og:description\" content=\"In recent years, more and more people have invested in one mutual fund. According to...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/forexrainbow.com\/how-to-tell-if-a-mutual-fund-is-safe\/\" \/>\n<meta property=\"og:site_name\" content=\"forexrainbow\" \/>\n<meta property=\"article:published_time\" content=\"2023-07-15T07:30:06+00:00\" \/>\n<meta name=\"author\" content=\"forexrainbow\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"forexrainbow\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/forexrainbow.com\/how-to-tell-if-a-mutual-fund-is-safe\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/forexrainbow.com\/how-to-tell-if-a-mutual-fund-is-safe\/\"},\"author\":{\"name\":\"forexrainbow\",\"@id\":\"https:\/\/forexrainbow.com\/#\/schema\/person\/ede20e4aa03ab53f8dcaf4ce80970d70\"},\"headline\":\"How to tell if a mutual fund is safe\",\"datePublished\":\"2023-07-15T07:30:06+00:00\",\"dateModified\":\"2023-07-15T07:30:06+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/forexrainbow.com\/how-to-tell-if-a-mutual-fund-is-safe\/\"},\"wordCount\":476,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/forexrainbow.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/forexrainbow.com\/how-to-tell-if-a-mutual-fund-is-safe\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/forexrainbow.com\/wp-content\/uploads\/2023\/07\/istock-1296650655-cybersecurity-1200x675-1.jpg\",\"articleSection\":[\"Forex Orders\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/forexrainbow.com\/how-to-tell-if-a-mutual-fund-is-safe\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/forexrainbow.com\/how-to-tell-if-a-mutual-fund-is-safe\/\",\"url\":\"https:\/\/forexrainbow.com\/how-to-tell-if-a-mutual-fund-is-safe\/\",\"name\":\"How to tell if a mutual fund is safe - forexrainbow\",\"isPartOf\":{\"@id\":\"https:\/\/forexrainbow.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/forexrainbow.com\/how-to-tell-if-a-mutual-fund-is-safe\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/forexrainbow.com\/how-to-tell-if-a-mutual-fund-is-safe\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/forexrainbow.com\/wp-content\/uploads\/2023\/07\/istock-1296650655-cybersecurity-1200x675-1.jpg\",\"datePublished\":\"2023-07-15T07:30:06+00:00\",\"dateModified\":\"2023-07-15T07:30:06+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/forexrainbow.com\/how-to-tell-if-a-mutual-fund-is-safe\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/forexrainbow.com\/how-to-tell-if-a-mutual-fund-is-safe\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/forexrainbow.com\/how-to-tell-if-a-mutual-fund-is-safe\/#primaryimage\",\"url\":\"https:\/\/forexrainbow.com\/wp-content\/uploads\/2023\/07\/istock-1296650655-cybersecurity-1200x675-1.jpg\",\"contentUrl\":\"https:\/\/forexrainbow.com\/wp-content\/uploads\/2023\/07\/istock-1296650655-cybersecurity-1200x675-1.jpg\",\"width\":1200,\"height\":675},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/forexrainbow.com\/how-to-tell-if-a-mutual-fund-is-safe\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/forexrainbow.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"How to tell if a mutual fund is safe\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/forexrainbow.com\/#website\",\"url\":\"https:\/\/forexrainbow.com\/\",\"name\":\"forexrainbow\",\"description\":\"Traiding News and Analysis for Forex\",\"publisher\":{\"@id\":\"https:\/\/forexrainbow.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/forexrainbow.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/forexrainbow.com\/#organization\",\"name\":\"forexrainbow\",\"url\":\"https:\/\/forexrainbow.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/forexrainbow.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/forexrainbow.com\/wp-content\/uploads\/2023\/01\/cropped-forexrainbow5.webp\",\"contentUrl\":\"https:\/\/forexrainbow.com\/wp-content\/uploads\/2023\/01\/cropped-forexrainbow5.webp\",\"width\":150,\"height\":150,\"caption\":\"forexrainbow\"},\"image\":{\"@id\":\"https:\/\/forexrainbow.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/forexrainbow.com\/#\/schema\/person\/ede20e4aa03ab53f8dcaf4ce80970d70\",\"name\":\"forexrainbow\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/forexrainbow.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/2c5ba3aaf4db1c55addb8d1ec9cddd4a?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/2c5ba3aaf4db1c55addb8d1ec9cddd4a?s=96&d=mm&r=g\",\"caption\":\"forexrainbow\"},\"sameAs\":[\"https:\/\/forexrainbow.com\"],\"url\":\"https:\/\/forexrainbow.com\/author\/forexrainbow\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"How to tell if a mutual fund is safe - forexrainbow","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/forexrainbow.com\/how-to-tell-if-a-mutual-fund-is-safe\/","og_locale":"en_US","og_type":"article","og_title":"How to tell if a mutual fund is safe - forexrainbow","og_description":"In recent years, more and more people have invested in one mutual fund. According to...","og_url":"https:\/\/forexrainbow.com\/how-to-tell-if-a-mutual-fund-is-safe\/","og_site_name":"forexrainbow","article_published_time":"2023-07-15T07:30:06+00:00","author":"forexrainbow","twitter_card":"summary_large_image","twitter_misc":{"Written by":"forexrainbow","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/forexrainbow.com\/how-to-tell-if-a-mutual-fund-is-safe\/#article","isPartOf":{"@id":"https:\/\/forexrainbow.com\/how-to-tell-if-a-mutual-fund-is-safe\/"},"author":{"name":"forexrainbow","@id":"https:\/\/forexrainbow.com\/#\/schema\/person\/ede20e4aa03ab53f8dcaf4ce80970d70"},"headline":"How to tell if a mutual fund is safe","datePublished":"2023-07-15T07:30:06+00:00","dateModified":"2023-07-15T07:30:06+00:00","mainEntityOfPage":{"@id":"https:\/\/forexrainbow.com\/how-to-tell-if-a-mutual-fund-is-safe\/"},"wordCount":476,"commentCount":0,"publisher":{"@id":"https:\/\/forexrainbow.com\/#organization"},"image":{"@id":"https:\/\/forexrainbow.com\/how-to-tell-if-a-mutual-fund-is-safe\/#primaryimage"},"thumbnailUrl":"https:\/\/forexrainbow.com\/wp-content\/uploads\/2023\/07\/istock-1296650655-cybersecurity-1200x675-1.jpg","articleSection":["Forex Orders"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/forexrainbow.com\/how-to-tell-if-a-mutual-fund-is-safe\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/forexrainbow.com\/how-to-tell-if-a-mutual-fund-is-safe\/","url":"https:\/\/forexrainbow.com\/how-to-tell-if-a-mutual-fund-is-safe\/","name":"How to tell if a mutual fund is safe - forexrainbow","isPartOf":{"@id":"https:\/\/forexrainbow.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/forexrainbow.com\/how-to-tell-if-a-mutual-fund-is-safe\/#primaryimage"},"image":{"@id":"https:\/\/forexrainbow.com\/how-to-tell-if-a-mutual-fund-is-safe\/#primaryimage"},"thumbnailUrl":"https:\/\/forexrainbow.com\/wp-content\/uploads\/2023\/07\/istock-1296650655-cybersecurity-1200x675-1.jpg","datePublished":"2023-07-15T07:30:06+00:00","dateModified":"2023-07-15T07:30:06+00:00","breadcrumb":{"@id":"https:\/\/forexrainbow.com\/how-to-tell-if-a-mutual-fund-is-safe\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/forexrainbow.com\/how-to-tell-if-a-mutual-fund-is-safe\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/forexrainbow.com\/how-to-tell-if-a-mutual-fund-is-safe\/#primaryimage","url":"https:\/\/forexrainbow.com\/wp-content\/uploads\/2023\/07\/istock-1296650655-cybersecurity-1200x675-1.jpg","contentUrl":"https:\/\/forexrainbow.com\/wp-content\/uploads\/2023\/07\/istock-1296650655-cybersecurity-1200x675-1.jpg","width":1200,"height":675},{"@type":"BreadcrumbList","@id":"https:\/\/forexrainbow.com\/how-to-tell-if-a-mutual-fund-is-safe\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/forexrainbow.com\/"},{"@type":"ListItem","position":2,"name":"How to tell if a mutual fund is safe"}]},{"@type":"WebSite","@id":"https:\/\/forexrainbow.com\/#website","url":"https:\/\/forexrainbow.com\/","name":"forexrainbow","description":"Traiding News and Analysis for Forex","publisher":{"@id":"https:\/\/forexrainbow.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/forexrainbow.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/forexrainbow.com\/#organization","name":"forexrainbow","url":"https:\/\/forexrainbow.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/forexrainbow.com\/#\/schema\/logo\/image\/","url":"https:\/\/forexrainbow.com\/wp-content\/uploads\/2023\/01\/cropped-forexrainbow5.webp","contentUrl":"https:\/\/forexrainbow.com\/wp-content\/uploads\/2023\/01\/cropped-forexrainbow5.webp","width":150,"height":150,"caption":"forexrainbow"},"image":{"@id":"https:\/\/forexrainbow.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/forexrainbow.com\/#\/schema\/person\/ede20e4aa03ab53f8dcaf4ce80970d70","name":"forexrainbow","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/forexrainbow.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/2c5ba3aaf4db1c55addb8d1ec9cddd4a?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/2c5ba3aaf4db1c55addb8d1ec9cddd4a?s=96&d=mm&r=g","caption":"forexrainbow"},"sameAs":["https:\/\/forexrainbow.com"],"url":"https:\/\/forexrainbow.com\/author\/forexrainbow\/"}]}},"_links":{"self":[{"href":"https:\/\/forexrainbow.com\/wp-json\/wp\/v2\/posts\/438","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forexrainbow.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forexrainbow.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forexrainbow.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forexrainbow.com\/wp-json\/wp\/v2\/comments?post=438"}],"version-history":[{"count":0,"href":"https:\/\/forexrainbow.com\/wp-json\/wp\/v2\/posts\/438\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forexrainbow.com\/wp-json\/wp\/v2\/media\/439"}],"wp:attachment":[{"href":"https:\/\/forexrainbow.com\/wp-json\/wp\/v2\/media?parent=438"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forexrainbow.com\/wp-json\/wp\/v2\/categories?post=438"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forexrainbow.com\/wp-json\/wp\/v2\/tags?post=438"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}