Who else wants to know how to choose the best funds?

It’s done! You have chosen a PEA or an insurance-linked life, perhaps even by following my advice for making a good choice . You are now facing the most difficult step, especially when one begins: choosing the right funds under this contract. Depending on the level of risk you are willing to take, you will play caution in relying on index funds , or you take more risks in order to obtain a further improvement. Here’s how I choose my side my money, to get the best possible performance.

Get an updated list of funds available to you. If you followed my advice , you have opted for a contract that offers at least a hundred funds. Otherwise you will find it hard to diversify, especially in the long term. Make sure you have the latest list of funds available with your contract.


Make a list of candidates. It provides the performance of the current year, over one year, three years, five and ten years of all existing funds. A gold mine. Print 3 or 5 first pages of each grading period, by clicking on the tab “% 3a”, for example, for a list of the best fund over 3 years. And so on.

List the best funds over time. Cross your results on paper the best performance over one year, three years, five and ten years for a single list of funds, the funds with the best results over time, those whose performance is repeated year after year . Remove from this list then the funds that you do not have access to your contract.

Vote for the funds in which you invest. From the list you got, create as many lists, sorted by performance, you have to market: a list for the Chinese market funds, another emerging countries, one on the French market, … Choose then, depending on your market knowledge and your convictions, the markets in which you want to invest, for those who will be carriers. I personally only keeps five or six markets, to be sufficiently diversified but also not too dilute performance. It only remains for you, for five or six lists that you have learned, to look in detail the first 2 or 3 funds each list, but also on MorningStar.fr the site manager’s background, for all details on hand to make your final choice, based on ratings, of any change of manager, the volatility displayed, the distribution in shares of the bottom, … A similar performance, do not forget to choose the background that has the lowest volatility, therefore the lowest risk.

I tried to keep it simple so that these explanations are clear for a beginner. Feel free to ask in the comments of other explanations, because for some it may be too complicated. For others it will be another side too simplistic and deserve additions, which will be welcome in your comments. And since we are in times of wishes, I hope you make the right choices for 2007.

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