1. Why You Should Always Buy No-Load Mutual Funds
2. Pay Attention to the Expense Ratio It Can Make or Break You!
3. Avoid Mutual Funds with High Turnover Ratios
4. Look for an Experienced, Disciplined Management Team
5. Find a Philosophy that Agrees with Your Own when Selecting a Mutual Fund
6. Look for Ample Diversification of Assets
7. The Case for Index Funds
8. A Word on International Funds
9. Know the Appropriate Benchmark for Your Mutual Funds
10. Always Dollar Cost Average

via about.com

1.   Check if the mutual fund's objective and investment strategy is the same as yours.

2.   Do some research on the mutual fund manager.

3.   Compare the recent performance of mutual fund with the index fund and other comparable funds.

4.    Look at the fund's

5.   Find out if the fund charges sales load.

6.   Determine the standard deviation of the fund.

7.   Check the fund's annual turnover.

via howtodothings

• creating a detailed asset allocation strategy.
• with the final result being poor or mediocre portfolio performance.
• Effective diversification spreads investment assets among different fund categories to achieve both a variety of distinct risk/reward objectives and a reduction in overall risk.

via seninvest