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The main purpose of this research is to help investors choosing stock mutual funds based on different area’s economic advancement with simpler and easier way. Secondly, to compare with the mutual funds performance differences in the same area for investors’ better understanding and reference among these different funds performances. Finally, to compare traditional dollar cost averaging investment with setting a complacence investment to understand if setting a complacence can increase the profit..
This research is base on domestic published stock mutual funds from Jan. 2000 to Dec. 2006. Through compiled statistics to understand different performances of mutual funds in the same country, different performances of stock mutual funds in different area, and if setting complacence can increase the performances of investment..
In this research, the results show the following points: 1.Due to differences of stock funds have different considerably performances; therefore, investors of mutual funds should choose economical developing potentially related funds for investment. 2.There are different performances of different stock mutual funds in the same area, but the difference of these performances is not as essential as performance on different area. Hence, the most important element is to choose future economically advancement perspective area. 3.If investors using dollar cost averaging way to invest mutual funds and have great expectation of its prospect, they should keep investing. Redeem the funds when the performances of these mutual funds growing slowly
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