Picking the right investment fund for your retirement is vital and to make sure you make the best choice there are a few important questions and checks you need to ask before parting with your money.

In part two of our articles on this topic we discuss how to check out the investment companies and the funds on offer which have made it to your short list.

Who to trust?

Picking the investment company to look after your money is one of the most important decisions you need to make. After all, they may be taking care of your investment for a long time and their performance will directly affect how much money you have in the future.

One key thing to do is to work out your investment goals, your attitude to risk and the type of investment products you need before you start looking for companies and choosing funds. That way you start with your requirements - not the colourful and alluring advertising you see in the papers.

Besides is that African Opportunities or Asian Structured Trust really the one fund that will fit your needs?

Always, always remember that investment companies mostly advertise investment funds that are new, have a good set of performance numbers at a particular time or fit in with a fashionable trend like Technology, Gold, China or Commodities.

Whether you're getting the advice of a professional or picking your retirement investments alone you really should check out the funds you're considering before you hand over your cheque.

Take a look online, buy and read the monthly money magazines in your local newsagent or research the listings in the weekend money sections to find out all you can about the investment company you're thinking of giving your money to. Here are some things to look out for:

• Has the fund management company been around for long?
• What sort of track record does it have?
• How long have the fund managers been working there?
• How has the companies funds performed?
• Has the firm won more than one award for performance?

If you are using the services of an adviser why not ask them why they are recommending a particular fund?

Is it because the fund is new or is offering a special offer or commission deal or because the fund truly has a good long term reputation with professionals?

The winners enclosure

When you're trying to choose between different funds are the awards they tell you they've won worth taking any notice of? Well, while industry awards tend to get sprinkled about like confetti that's mainly because each of the main industry magazines gives them out. So if a fund you're interested in has won some awards make sure you take a look at the actual details.

For example, have they won the same award several years running or the same award in the same year from different providers?

As you'll appreciate there's a big difference between the two. The better fund is likely to be the one that's won awards year after year rather than the 'flash harry' that's won a stack of trophies for just one year.

Only invest when you're happy with the timing, your choice, the recommendations being given to you and that you've got some ready money for an unexpected bill. That way when you do invest you'll be able to sit back and enjoy something else knowing that your money is in safe hands and that you've made a wise decision.

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