PART ONE: HOW TO PICK MUTUAL FUNDS. |
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Chapter 1: Know What Your Fund Owns |
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Using the Morningstar Style Box. |
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Using the Morningstar Categories. |
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Examining Sector Weightings. |
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Examining Number of Holdings. |
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Checking Up on the Frequency of Portfolio Changes. |
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Investor's Checklist: Know What Your Fund Owns. |
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Chapter 2: Put Performance in Perspective. |
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Understanding Total Return. |
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Checking Up on Aftertax Returns. |
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Putting Returns in Perspective. |
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Using Indexes as Benchmarks. |
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Using Peer Groups as Benchmarks. |
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The Perils of Return Chasing. |
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Return History: The Longer the Better. |
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Investor's Checklist: Put Performance in Perspective. |
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Chapter 3: Understand the Risks. |
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Morningstar's Risk Rating. |
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The Morningstar Rating (The Star Rating). |
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Investor's Checklist: Understanding the Risks. |
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Chapter.4: Get to Know Your Fund Manager. |
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Understanding Types of Fund Management. |
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Dealing with Management Changes. |
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Assessing Fund Companies. |
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Investor's Checklist: Get to Know Your Fund Manager. |
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Chapter 5: Keep a Lid on Costs. |
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Avoiding the Rearview Mirror Trap. |
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Understanding Sales Charges. |
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Investor's Checklist: Keep a Lid on Costs. |
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PART TWO: HOW TO BUILD A PORTFOLIO. |
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Chapter 6: Match Your Portfolio to Your Goals. |
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Setting Your Asset Allocation. |
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Making Up for Shortfalls. |
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Diversifying Your Portfolio. |
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Investing for Goals That Are Close at Hand. |
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Investor's Checklist: Match Your Portfolio to Your Goals. |
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Chapter 7: Put Your Portfolio Plan in Action. |
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Building Your Portfolio's Foundation. |
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Knowing How Many Funds Are Enough. |
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What You Really Need: Diversification. |
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Simplifying Your Investment Life. |
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Building a Simple Portfolio. |
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Investor's Checklist: Put Your Portfolio Plan in Action. |
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PART THREE: FINDING IDEAS FOR YOUR PORTFOLIO. |
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Chapter 8: Find the Right Core Stock Fund for You. |
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Understanding Value Funds. |
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Understanding Growth Funds. |
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Deciding between Style-Specific and Flexible Funds. |
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The Indexing versus Active Management Debate. |
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Using Exchange-Traded Funds As an Index Fund Alternative. |
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Investor's Checklist: Find the Right Core Fund for You. |
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Chapter 9: Move Beyond the Core. |
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Using Sector Funds Wisely. |
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Using Real-Estate Funds in a Portfolio. |
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Using Foreign Funds in a Portfolio. |
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Using Small-Cap Funds in a Portfolio. |
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Investor's Checklist: Move Beyond the Core. |
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Chapter 10: Find the Right Bond Fund for You. |
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Understanding Interest-Rate Risk. |
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Understanding Credit-Quality Risk. |
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Specialty Strategy 1: Municipal Bond Funds. |
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Specialty Strategy 2: High-Yield Bond Funds. |
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Specialty Strategy 3: Prime-Rate Funds. |
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Specialty Strategy 4: Inflation-Indexed Bond Funds. |
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Investor's Checklist: Find the Right Bond for You. |
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Chapter 11: Finding the Right Fund Companies for You. |
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Kicking the Tires: No-Load Fund Families. |
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Kicking the Tires: Load Fund Families. |
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Kicking the Tires: Boutiques. |
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Investor's Checklist: Finding the Right Fund Companies for You. |
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PART FOUR: MONITORING YOUR PORTFOLIO. |
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Chapter 12: Schedule Regular Checkups. |
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Knowing When to Rebalance. |
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Conducting a Quarterly Review. |
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Investor's Checklist: Schedule Regular Checkups. |
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Chapter 13: Know When to Sell. |
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Keeping an Eye on Asset Growth. |
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Knowing What to Make of Manager Changes. |
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Monitoring Fund-Family Growth, Mergers, or Acquisitions. |
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Investor's Checklist: Know When to Sell. |
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Chapter 14: Keep a Cool Head in Turbulent Markets. |
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Investing in Bear Markets. |
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What to Do When Your Fund Owns a "Scandal Stock". |
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Investing in Bull Markets. |
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Investor's Checklist: Keep a Cool Head in Turbulent Markets. |
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PART FIVE: BRINGING IT ALL TOGETHER: MORNINGSTAR PORTFOLIOS. |
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Chapter 15Look Inside Morningstar's Portfolios. |
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Our Fund-Selection Process. |
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Putting the Pieces Together. |
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PART SIX: MORE ON MUTUAL FUNDS: FREQUENTLY ASKED QUESTIONS. |
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1. How Does the Morningstar Rating for Mutual Funds Work? |
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2. What Should I Do When My Fund Loses a Star? |
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3. How Does Morningstar's Style Box Work? |
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4. How Do I Buy My First Fund? |
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5. What Should I Do When My Fund Manager Leaves? |
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6. Should I Buy a Rookie Fund? |
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7. Should I Buy a Fund That's Closing? |
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8. Should I Buy a Fund That's Doing Really Well? |
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9. Should I Buy a Fund That's in the Dumps? |
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10. How Can I Pay Less in Taxes? |
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11. How Can I Determine Whether a Fund Is Best for a Taxable Account or a Tax-Sheltered Account? |
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12. How Can I Find the Best Fund Supermarket? |
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13. How Can I Find a Financial Planner? |
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14. How Do I Read a Fund's Prospectus? |
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15. What Do I Need to Know About the Statement of Additional Information? |
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16. How Do I Read a Fund's Shareholder Report? |
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RECOMMENDED READING. |
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OTHER MORNINGSTAR RESOURCES. |
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INDEX. |
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