Before investing in mutual funds, learn who carries the top mutual fund you're interested in. If you're trying to build a diversified portfolio in today's economy, you need to do some research. Even with the economic situation, you can make smart investments for the future. But how do you know which funds to invest in? Here are a few criteria you can use:

Fees And Expenses

One criterion for rating a mutual fund is to look at the fees and expenses associated with it. Even if a fund has had a high rate of return on investments for the past ten years, you'll be throwing away money if it charges you tons in administrative fees and other fees.

Even if the fees associated with a particular mutual fund seem minimal - less than 2% - they can really add up over the life of a long-term investment. A mutual fund that charges a mere 1.5% can cost tens of thousands of dollars over a span of thirty or forty years.

As you're trying to find the top mutual fund, you'll find the fees and expenses associated with each fund in its prospectus, which you should read before investing. If the fees are going to take a big cut of your returns, that mutual fund isn't one you should go with.

Experience And Longevity

Mutual funds managed by individuals rely on the know-how and experience of individuals to make good returns on investments. That means that if you're looking at a managed mutual fund, you should check the track record of the person who will be in-charge of your money.

If your mutual fund is managed by a team or company, you'll also want to check out the track record of the company. Look at the company's past successes and failures to get an idea of how well they'll handle your money.

Long-Term Numbers

It's easy to get sucked in to a mutual fund that's seen fantastic returns in the past six months, but when trying to find a top mutual fund, you should look at the long-term. Look at the longer history of the fund and see if it has weathered the economic ups and downs. Buying into a fund with a one-time high isn't as smart as buying into a fund with a good track record over a period of years.

Finding a good mutual fund isn't as much about high returns over a period of months as it is about the longevity and stability of the fund and the company that manages it. In order to find a top mutual fund in which to invest, you need to take a good, hard look at the numbers instead of making a rash decision based on someone else's research.