Christine Benz & Peter Di Teresa 
Morningstar Guide to Mutual Funds 
5-Star Strategies for Success

Praise for Morningstar Guide to Mutual Funds

‘Picking actively managed mutual funds is no mean challenge. And as
the recent era underscores, past performance is of little help. The
Morningstar Guide to Mutual Funds helps cut through the fog with a
solid volume of constructive advice. The central message-‘truly
diversify, keep it simple, focus on costs, and stick with it’-is
not only timeless, it is priceless.’

-John C. Bogle, founder and former CEO, The Vanguard Group

‘There’s nothing Morningstar doesn’t know about mutual funds. And
at last, for ready reference, there’s a book. You’ll find
everything here you need to know about managing fund investments,
inside or outside a 401(k).’

-Jane Bryant Quinn, Newsweek columnist and author of Making the
Most of Your Money

‘All serious mutual fund investors know that Morningstar is the
source of impeccable data and sound investment advice. This book is
the culmination of nearly two decades of research, analysis, and
good old commonsense wisdom.’

-Tyler Mathisen, financial journalist, CNBC

‘Momentum investing, the hype in NASDAQ, the dot-com mania are
mostly behind us. Now, we must navigate through the market debris.
We need a compass as we look to allocate our financial resources in
a way best suited to maintain purchasing power and fully fund
retirement. The Morningstar Guide will help investors find true
north and steer a course to reach their long-term financial
goals.’

-Mario J. Gabelli, Chief Investment Officer

Gabelli Asset Management, a publicly traded company

‘A generation of investors who took the stock market for granted
now know how important it is to understand-and control-their own
investments. The Morningstar Guide should be their most important
resource.’

-Terry Savage, Chicago Sun-Times financial columnist and author of
The Savage Truth on Money

Table of Content

PART ONE: HOW TO PICK MUTUAL FUNDS.

Chapter 1. Know What Your Fund Owns.

Chapter 2. Put Performance in Perspective.

Chapter 3. Understand the Risks.

Chapter 4. Get to Know Your Fund Manager.

Chapter 5. Keep a Lid on Costs.

PART TWO: HOW TO BUILD A PORTFOLIO.

Chapter 6. Match Your Portfolio to Your Goals.

Chapter 7. Put Your Portfolio Plan in Action.

PART THREE: FIDING IDEAS FOR YOUR PORTFOLIO.

Chapter 8. Find the Right Core Stock Fund for You.

Chapter 9. Move Beyond the Core.

Chapter 10. Find the right Bond Fund for You.

Chapter 11. Finding the Right Fund Companies for You.

PART FOUR: MONITORING YOUR PORTFOLIO.

Chapter 12. Schedule Regular Checkups.

Chapter 13. Know When to Sell.

Chapter 14. Keep a Cool Head in Turbulent Markets.

PART FIVE: BRINGING IT ALL TOGETHER: MORNINGSTAR PORTFOLIOS.

Chapter 15. Look Inside Morningstar’s Portfolios.

PART SIX: MORE ON MUTUAL FUNDS: FREQUENTLY ASKED QUESTIONS.

1. How Does the Morningstar Rating for Mutual Funds Work?

2. What Should I do When My Fund Loses a Star?

3. How does Morningstar’s Style Box Work?

4. How Do I Buy My First Fund?

5. What Should I do When My Fund Manager Leaves?

6. Should I Buy a Rookie Fund?

7. Should I Buy a Fund That’s Closing?

8. Should I Buy a Fund That’s Doing Really Well?

9. Should I Buy a Fund That’s in the Dumps?

10. How Can I Pay Less in Taxes?

11. How Can I determine Whether a Fund Is Best for a Taxable
Account or a Tax-Sheltered Account?

12. How Can I Find the Best Fund Supermarket?

13. How Can I find a Financial Planner?

14. How do I read a Fund’s Prospectus?

15. What Do I Need to Know About the Statement of Additional
Information?

16. How do I read a Fund’s Shareholder Report?

Recommended Reading.

Other Morningstar Resources.

Index.

About the author

CHRISTINE BENZ is Editor of Morningstar¯®
Fund Investor¯TM, a monthly newsletter for
investors, and Morningstar¯® Funds
500¯TM, an annual publication covering 500
top mutual funds.



PETER DI TERESA is a retirement plan consultant with Morningstar.
He has written for the print publications
Morningstar¯® Mutual
Funds¯TM and
Morningstar¯®
Fund Investor¯TM, as well as the ‘Ask the
Professor’ column for Morningstar’s Web site,
Morningstar.com.

RUSSEL KINNEL is Director of Mutual Fund Analysis for Morningstar,
Inc. He writes the widely read ‘Fund Spy’ column for
Morningstar.com, and manages Morningstar’s team of mutual
fund analysts.



MORNINGSTAR, INC. is a Chicago-based global investment research
firm. Morningstar is known for its objective research and analysis
on stocks, mutual funds, exchange-traded funds, closed-end funds,
and more. Morningstar is an independent company and is the trusted
source for individuals, financial advisors, institutions, and the
news media.