If you're a new investor, you might be wondering just what mutual fund returns you could expect from the different mutual funds. Well, as with everything else in investing, you can never be sure what your returns will be from year to year, but there are a few ways to make sure that you get the best returns for your money.

Stability Vs. Innovation

You should let your financial goals determine what you do with your money, so before you invest, think about what you want to do. Are you investing money that you'll need in a year or two for a down payment on a house or for some other big-ticket purchase? Or are you going to leave your money in the mutual fund until you retire? Most investors have a combination of these two goals, and there are different ways to make sure that your mutual fund returns help you meet these goals.

Either way, you'll want to decide what kind of company to invest with. Both large, stable companies and smaller, newer companies have advantages and disadvantages for different types of investments. Larger companies tend to have steadier returns since they invest in a wide variety of stocks. If one particular stock has a great or terrible return, it doesn't impact the overall returns of the fund in general. Smaller companies, on the other hand, have less capital and so invest in few stocks. They may be more risky, but if just one or two of their stocks has a fantastic return, the overall returns of the company will be great.

Larger, more stable companies may be better for pulling your investment through tough economic times and coming out with good returns in a couple of decades. Because these companies invest widely, a downturn in one economic sector won't sink your whole mutual fund. Smaller companies, on the other hand, can be a good bet for shorter investments with higher returns, but if these companies grow continue to do well, they'll turn into the large, stable companies better for long-term investing.

Watch The Expenditures

Besides choosing the right company to invest with, the best way to ensure that you're getting a good return on your investment is to check the mutual fund's fees and expenditures. Even if the fund is making fantastic returns for three years, you'll lose money in the end if the mutual fund is taking too much money out of your returns. When it comes to your mutual fund returns, you may be better off with a fund that makes less money for you but takes less money from you.