How Mutual Fund Investors Use the AI Stock Forecast

As a mutual fund investor, you only need to spend about 15 minutes a month to follow our investment system. You simply use the rankings on the "Industry Forecasts" page of the AI Stock Forecast to help you select funds with the best profit potential.

Buying

As a rule, it is wise to diversify your investments. We recommend holding between 5 and 10 mutual funds at any one time. You should invest in mutual funds related to industries that currently have "buy" ratings in the "Industry Forecasts" section of the AI Stock Forecast.

Selling

When a "sell" rating is issued, you should transfer your investment into another mutual fund whose related industry has a "buy" rating. Preferably, the industry that you buy into should be the one with the highest ranking in order to maximize your chances for phenomenal profits. Historically, the average holding time for an industry is about 12 months. So on average, if you are holding 10 funds, you'll be exchanging a fund less than once per month. This keeps the hassle of buying and selling funds to a minimum.

Which Funds To Invest In

Presently, of all the mutual fund companies, Fidelity has the best selection of industry related mutual funds. The Fidelity Select Fund Family has 41 different industry related funds that provide the convenience of one stop shopping.  We use the Fidelity Select funds as a single source for our mutual fund investment system. For your convenience, we have compiled an Industry / Fund Cross Reference of mutual funds from the Fidelity Select Portfolio that are similar in nature to each of the 100 industries for which we make forecasts.

If you open up an account directly with Fidelity, the trading costs are minimal. In September of 2003, Fidelity removed the 3% load fee that used to be charged on first time investments into the Select Portfolio Funds. Now, the funds are virtually no-load funds. Once invested, the only other trading cost is a .75% redemption fee if a fund is sold within 30 days of buying it. However, if you use our trading signals, this fee can be totally avoided since we only generate trade signals once each month and the average holding period for a given fund is approximately 12 months. So, it is very unlikely that we would ever have a buy and sell signal on a fund that was separated by only 30 days.