1. Read a fund’s prospectus before you decide to invest in it. Be clear on the fund’s holdings.

2. Know the fund’s fees and expense ratio – they can have a significant impact on returns.

3. Don’t choose a fund based on recent stellar performance. The fine print will tell you that past performance does not guarantee future results. It doesn’t.

4. Don’t put all your eggs in one basket. Diversify by including funds that invest in fixed income (bonds), equities (stocks) and cash. A money market fund is a cash investment offering liquidity, but remember that, though it tries to maintain a stable $1 share price, it, too, can lose money.

5. Consider balanced funds. They include various asset classes, are offered by most fund managers, and can be an easy way to diversify.

6. Market movements will change your asset allocation over time. Keep an eye on your funds, and rebalance your portfolio if necessary, for example if a successful stock market has increased your equity holdings to a point where they represent considerably more than their portion in the original mix.

7. However, resist the urge to fiddle with the funds in your portfolio at every minor fluctuation.

8. Review your portfolio once a year, or when your circumstances change.

9. Consult a certified public accountant on the tax implications of your fund transactions.

10. Finally, know the funds offered in your IRA. Take points 1 to 8 into account when selecting your IRA funds.