Investing in mutual funds is a smart way to make your money work for you. Finding mutual funds to fit your needs is like learning to buy clothes to fit your style. Depending on your investment strategy, interests, and philosophy, your choice in funds will be different. Here are six tips on getting started with mutual funds.

1. Find a Personally Suitable Brokerage House.

Decide whether you will buy your funds through a traditional brokerage house like Fidelity, Edward Jones, etc., or an online discount brokerage house like E*Trade or Zecco.com. Going through a traditional brokerage will be more expensive, but you will have more tools available to you, including the ability to email, chat, or call financial advisers that guide you along the way. However, investing online also offers an array of basic tools and may be the best start for a hobby trader.

2. Assess Personal Financial Risk.

Your investment philosophy is the way you invest based on your risk tolerance. Your risk tolerance will vary from ultra-conservative to very-aggressive. A person with a conservative investment philosophy will lean towards investing in safer funds, and forgo a potentially higher rate of return for less volatility, or risk. A good way to measure your financial strategy is by observing how comfortably you are sleeping. If you aren’t getting enough sleep because you’re worried about how aggressive your funds are, its time to take it down a notch. You should always follow your gut when you invest.

3. Avoid Funds with Excessive Fees.

Mutual funds either charge an up front fee, or a back end fee, and they always charge a 12b-1 fee. Front-end load funds are sold by stock brokerage firms, banks, and financial planners and charge an up-front fee which is the commission to compensate brokers. This commission is 3-8.5% and is sliced right off the top of the amount you are investing. After you place an order for a fund, the fees will be taken out, and the rest of the money will be divided by the cost of the funds share value.

4. Long Term Versus Short Term Strategies.

Long term investors should invest in front-end funds. If you are planning on sticking with a mutual fund longer than 5 years, then invest in a front-end-load fund. The fees will be proportionally less after 5 years and you will see a better rate of return. Short term investors should invest in low front-end load funds or small back end load funds with modest 12b-1 fees. They have the highest annual expenses but are still a better choice than no-front-end load funds. These types of funds should be avoided as they are really expensive with back end load fees, charge the maximum 12b-1 fees and have high annual expenses.

5. Picking Funds that Interest the Investor.

You will have more fun picking out funds when they are tailored to your style. It isn’t just about the technical stuff like fees, and strategies. It is also about what you are generally interested in. If you are into this new green mutual fund and socially responsible investing trend, then look into mutual funds that claim their are socially responsible mutual funds. If you are interested in European countries only, then invest in their funds. If you are into a specific industry, look into an industry fund. This way, when you are getting ready to do your research, it won’t be so boring. The fun part about finance is watching your wealth grow, not doing the leg work, so make it easier by investing in things that interest you.

6.Contribute Regularly to Mutual Funds.

Add to your holdings either monthly or quarterly. Once you have paid your first up front minimum fee, you are able to contribute extra money to your mutual fund at a lower price which is usually $50 or less. By putting money into your fund regularly you can take advantage of small dips in the market through dollar cost averaging. Mutual funds are great tools for any investor regardless of experience or wealth. They are convenient, easily accessible, and a great addition to any portfolio.