1.Determining the time horizon of using the funds: The duration of usable funds will affect your investment decision. For instance, if a certain amount of funds can only be set aside for three months, this amount is not suitable for investment in mutual funds which are used to accumulate long-term capital or which may have large fluctuations within short periods of time. However, if you hope to accumulate money for your children's education or your retirement fund, because the investment period will be long, you can select a mutual fund targeting the long-term optimistic market.

2.Understanding your money management goals and risk tolerance: You should consider your age, income, family situation, and risk tolerance when investing. Generally speaking, relatively conservative individuals should seek to make investments that will yield steady and consistent profits. On the other hand, individuals who make large profits within a relatively short time should be prepared to tolerate dramatic short-term market fluctuations. Persons who are nearing retirement age have only a short time to work and have a decreasing ability to tolerate market fluctuations; therefore, they should invest in relatively stable and dependable funds.

3.Assessing the investment market's fluctuations: In addition to understanding one's own investment goals and risk tolerance, investors should consider information on economic fundamentals, policies and current news reflecting the current state of global markets then select suitable funds during the current period of time.

4.Selecting suitable investment methods: In general, two investment approaches in mutual funds may be employed, namely lump sum investment and systematic investment plan (SIP). Both of these approaches have their own advantages so investors can select either one or both approaches in light of their needs, risk and return preferences, and amount of funds available for investment. Regardless of the type of funds or investment approaches, investors should regularly scrutinize their investments and try to avoid missing the best times for taking profits or stopping losses.