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From: wjm@lcuxc.UUCP (B. Mitchell)
Newsgroups: net.invest
Subject: RE: investing in small companies
Message-ID: <338@lcuxc.UUCP>
Date: Sun, 24-Mar-85 21:18:06 EST
Article-I.D.: lcuxc.338
Posted: Sun Mar 24 21:18:06 1985
Date-Received: Mon, 25-Mar-85 03:56:24 EST
Organization: Bell Communications Research, Inc.
Lines: 27

There are a number of mutual funds that specialize in finding small
companies and investing in them.
Some general advice:
1)  Find a NO-LOAD mutual fund.  There is no reason to pay a broker an
8.5% sales charge up front to get into a fund.  There are several no-loads
specializing in small companies and a no-load puts every dollar you invest
to work for you, not some broker.
To get information on no-load funds, look at Wiesenberger's "Investment
Companies" at your public library.  They will provide the address and
phone # of the fund, who will send you a prospectus and other pertinent
data on request.  With no-loads, you have to contact the fund, but many of
them have 800 numbers, so even the phone call is free.
2)  Look at the track record of the fund.  Wiesenberger, "Forbes", and "Money"
publish performance statistics for mutual funds and how they do in up and
down markets.  The best measure is a fund's long-term (10 years or more)
performance record.
3)  Consider a family of mutual funds, each with a different investment
objective, run by the same management (e.g. Dreyfus, Fidelity, Value Line,
20th Century, etc).  They often allow you to switch from one of their
funds to another with a phone call, should your investment objectives
change.
4)  Keep in mind that investing in small companies is speculative, and you
are taking higher than average risks with the potential for higher than
average rewards.
Good Luck (you may need it).
Bill Mitchell (ihnp4!lcuxc!wjm)