Managing director of GulfStream Securities, Ms Carolyn Hall, C.A., speaking at the Hamilton Lions Club luncheon at the Princess Hotel yesterday, said that Bermudians need to know how to compare the performance histories of mutual funds.

GulfStream and other securities dealers offer some 1,500 mutual funds to choose from. She added: "The investor wants to be part of the group which earned over 100 per cent last year...I encourage anyone interested in mutual funds to purchase one of several magazines which regularly publish these historical performance results and rank mutual funds as to their long-term performance. Please don't be swayed by just one year's results.'' Ms Hall said that one of the problems with the current high level of local interest in mutual funds is that investors who do not learn to use the appropriate indicators of strengths and weaknesses, because they have not invested in stocks directly, will buy mutual funds on strength, only to see them decline when the economic cycle turns weak.

The areas that investors in individual stock come to understand, she says, "include capital growth versus income, price earnings multiples and returns on capital. But there are other financial ratios which help determine if a stock is under-valued, worth buying or over-valued, worth selling.'' "The investor should be courageous if he has sufficient funds, and time, to purchase his own diversified portfolio of stocks.

"Learn how to assess buying and selling opportunities; learn to balance your portfolio between stocks and fixed income instruments. Everyone's portfolio should have an element of fixed income instruments.'' Ms Hall has worked with the Bermuda Government and consulted on investment related areas, such as the two Government administered pension plans and certain investigations carried out by the Criminal Investigation Department of the Bermuda Police.

GIVING ADVISE -- MS CAROLYN HALL.