Published: August 9th, 2025
By: The Her Financial Frequency Team

In past episodes, we’ve broken down the different types of funds and weighed their pros and cons. But here’s the truth: knowing what funds exist is only half the battle.

The bigger question is: How do you pick the right one for your goals?

Today’s topic is what we like to call Fund Shopping—practical steps for choosing investments, spotting red flags, and learning from real-life stories (including some of our own horror stories).

The Fund Shopping Mantra: The Three F’s

When evaluating any investment fund, start with our simple mantra: Fit, Fees, and Flexibility.

1. Fit: Matching Investments to Your Goals

“Fit” is about making sure a fund aligns with your personal financial goals. Ask yourself:

> Are you chasing long-term growth?

> Do you need regular income (a.k.a. “mailbox money”)?

> What level of risk keeps you sleeping at night?

Your fit might change with time. For example, someone nearing retirement may want steady payouts, while younger investors might prefer aggressive growth.

Tip: Fit isn’t one-size-fits-all. It’s about what supports your lifestyle, risk tolerance, and timeline.

2. Fees: The Silent Profit Killer

Fees can make or break your returns. Every fund has costs—expense ratios, management fees, trading costs—and they vary widely.

> Actively managed funds may charge 2–3% per year.

> Index funds may cost only 0.25% or less.

> Some fees are upfront, others are on the back end.

> All of this is detailed in the PPM (Private Placement Memorandum)—the “Bible” of the fund. It’s long and detailed, but crucial to review.

Tip: If you don’t understand the fine print, consult an attorney or experienced investor before committing.

3. Flexibility: Accessing Your Money

Flexibility is about liquidity—how easily can you access your money?

> Some funds lock up your investment until the project sells.

> Others allow early withdrawals but may penalize you.

> A few require 90-day notice to return funds.

In general:

Higher returns = longer lockups.

More liquidity = lower returns.

Tip: Know the exit rules before investing, and be honest with yourself about how long you can live without that money.

Red Flags and Green Flags

Once you’ve considered the Three F’s, look for these signals:

Green Flags:

> You can talk directly with fund managers.

> The investment is explained simply and transparently.

> The fund’s values align with your own.

Red Flags:

> You don’t understand how the fund makes money.

> The PPM feels overly complicated with no guidance.

> You can’t reach the people managing your money.

Bottom line: If you can’t explain the investment in one or two sentences, you probably shouldn’t invest.

Do Fund Ratings Matter?

Some big funds are rated by agencies, but those ratings usually apply to massive billion-dollar institutions. For smaller or niche funds, ratings are rare.

Instead, focus on:

> Trusting the team (know, like, and trust the people running it).

> Transparency (do they explain everything clearly?).

> Track record (have they managed investments successfully before?).

Remember: even a 5-star rating doesn’t guarantee future results.

Real Talk: Our Best and Worst Fund Stories

No investing journey is complete without lessons learned. Here are a few of ours:

> The Missed Project: One real estate investment never materialized. The money sat for years with no returns. It was a tough reminder to vet managers carefully.

> The Legal Battle: Another deal faced fraud and lawsuits. The upside? Because we had vetted the team, they fought hard to protect investors—proof that good people matter.

> Market Timing: Early deals during a market upswing performed better than expected. Later, in a down cycle, returns slowed. This taught us flexibility and patience are essential.

> Lesson: Not every investment is smooth, but research, relationships, and resilience make the difference between a temporary setback and a total loss.

How Do You Actually Invest in a Fund?

There are multiple paths to fund investing:

> Corporate funds: Through brokers like Fidelity or Schwab.

> Self-directed retirement accounts: Rolling over a 401(k) into a self-directed IRA gives you control to invest in funds, real estate, or other alternatives.

> Cash savings: Money in savings or money market accounts can also be redirected into funds.

Pro tip: Always compare fees, timelines, and structure when moving money between accounts.

Final Thoughts: Fund Shopping with Confidence

Choosing the right investment fund isn’t about chasing trends. It’s about:

> Matching investments to your goals (Fit).

> Understanding the costs (Fees).

> Knowing the rules for getting your money back (Flexibility).

> Evaluating the team and transparency behind the fund.

At the end of the day, investing carries risk—but so does not investing. The key is to educate yourself, lean on trusted advisors, and only invest where you feel aligned.

We hope this guide helps you shop smarter for funds and build wealth with confidence.

Want More?

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Remember: Wealth isn’t just about numbers — it’s about energy, alignment, and intention.

Her Financial Frequency: Helping women stop playing small and start building legacy wealth with purpose.

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