How to decide on mutual funds

[Cafe Latte]

DH and I have several mutual funds we have held for years. We've watched them go up and down, but for the most part, they have been good. I'm looking to invest in new (to us) mutual funds, but really don't know where I should start. We are still contributing to the ones we already have, but have some extra money and want to try something else. If it works, great, if not, we can live with the loss. My account is with Fidelity and they have tools to research funds, but really, how do I decide (and I'm really a dummy in this field). I don't remember why we chose the ones we already have, but I am having a hard time making a decision. We know the whole thing is a crap shoot, and you really need to look at the long term past performance, and we are in it for the long term (over 20 years), but how do I know when it's right to click that button to buy?

[ErinM]

I would call Fidelity and talk to them. That's what they're there for.

[BucknellAlum]

In the past, I always relied on Forbes magazine's rankings.

Personally, I usually stick with things like index funds with low fees (Vanguard's are usually pretty low). And asset allocation is just as important as picking the "right" fund; you have to pick the right fund for its role in your portfolio.

[alicerh]

Morningstar is the most respected source of information on mutual funds. They rate nearly all of them on many factors. They then assign a star rating after all of their research. If you stick with 4 and 5 star funds of the investment type you are interested in, you will be on the right road. Top ratings are given to the funds with the best managers and the highest return for 1, 3 and 5 year periods. The mutual funds themselves brag about their star rating if it is high enough. You also can look up the info and rating on the funds you currently own to see how they rate as compared to others in their fund type

[Cafe Latte]

Thanks for the feedback. I decided to use the fidelity tools to narrow it down to 5 funds, and then did some extra research on various sites. Like I said, I'm not in it short term, so time will only tell if I chose the right ones. There are just so many options out there.