What type of mutual fund is right for me?

The mutual fund that’s right for you is one that does the following:

• Matches your investment objectives
• Uses an investment strategy that makes sense
• Stays within your risk parameters

You can invest more aggressively if you have a longer time horizon, because you have more time to recover from the inevitable ups and downs of the market.

What is a socially responsible fund?

Socially-responsible funds allow you to invest in a manner that’s consistent with your values. These funds won’t invest in certain types of companies. For example, certain socially-responsible funds refuse to invest in companies that sell cigarettes.

Your perception of a socially-responsible investment might be different from someone else’s. Whereas you might want to stay away from companies that are not environmentally-friendly, another investor might shy away from corporations that profit from gambling or alcohol.

The mutual fund’s prospectus will tell you what ideals drive investment decisions. The socially-responsible fund’s Web site will tell you some of its recent holdings. The Morningstar.com Web site will give you the names of socially-responsible mutual funds you may wish to consider. Remember, though, that investing in companies that share your values doesn’t necessarily mean you’ll make money on your investment.