As you may be aware, the goal of investing is to maximize earnings and minimize cost while taking on as little risk as possible.
When it comes to looking at specific mutual funds and ETFs, these are the things to look for:
- High return compared to similar funds/indexes over various periods (1, 3, 5, and 10 years, if applicable)
- Low expense ratios compared to similar funds/indexes
- No loads or commissions
- Diversification (index funds are usually well diversified)