Should You Invest in New Mutual Funds Right Away?

A fresh fund can have its advantages, as long as it has a manager you trust.

Let’s face it, there are plenty of reasons to avoid a newly launched fund. For starters, there’s the absence of a long-term track record, as well as the sticky question of whether the fund will survive. So why would anyone buy shares in a new fund?

Because new doesn’t necessarily mean green. If the fund is managed by a proven investor who has honed his strategy elsewhere with good results (see Trusted Managers, New Funds), then you know, to some degree, what you’re getting.

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Nellie S. Huang
Senior Associate Editor, Kiplinger's Personal Finance

Nellie joined Kiplinger in August 2011 after a seven-year stint in Hong Kong. There, she worked for the Wall Street Journal Asia, where as lifestyle editor, she launched and edited Scene Asia, an online guide to food, wine, entertainment and the arts in Asia. Prior to that, she was an editor at Weekend Journal, the Friday lifestyle section of the Wall Street Journal Asia. Kiplinger isn't Nellie's first foray into personal finance: She has also worked at SmartMoney (rising from fact-checker to senior writer), and she was a senior editor at Money.