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INVESTING On Mutual Funds For research and commentary surf these Web sites GORDON POWERS Saturday, July 11, 1998 Although it often looks like a colossal block party gone wrong, there's no denying that the World Wide Web is a treasure trove for investors. But it's the Internet's very immediacy that makes it a bit suspect when it comes to mutual funds. After all, just how much do you really need to know about yesterday's unit value? Still, if you want access to many of the tools and research once available only to professionals, and some trenchant commentary to boot, then the Web is the place to be. Here are a few sites worth looking at. While most are free, prices, where applicable, are in U.S. dollars. Invest-o-rama ( http://www.investorama.com). If you don't really know what you're looking for or just aren't very good at finding what you want, then this is a good place to start. It's a Web directory with links to roughly 7,000 financial sites, each briefly summarized, reviewed and grouped into categories. Don't look for much original material here though. Morningstar ( http://www.morningstar.net). This U.S.-based independent fund research company has created an excellent site for both beginning and experienced fund buyers. Although it only covers U.S. funds, much of the advisories apply equally in Canada. An extensive archive of how-to articles culled from its various publications and up-to-date summaries of current research and symposiums make this a must for discerning on-line investors. If you think fund commentaries only come in slate grey, check out the offbeat Stock Analyst's Journal or Fund Spy. Although there's a premium option available for $9.95 (U.S.), most Canadian investors will be adequately served by the site's free services. The Motley Fool ( http://www.fool.com). Looking for an ironic counterpoint to fund investing in general? Go visit the boys at The Motley Fool. While it may seem that Tom and Dave Gardner, complete with trademark jester hats, are everywhere these days, less than five years ago this was merely a moribund site on America Online. Now, however, it's a giant investment club with roughly 100 employees extolling the virtues of index funds and do-it-yourself portfolios that lean heavily toward technology stocks. Look for common-sense commentary laced with a healthy dose of humour as well as several model portfolios. Do they know what they're doing? I'm not really sure. Although their real-life portfolios have backed off recently, the Gardners have seemingly been able to beat the S&P 500 over the past few years. They've yet to see a bear market, though. The Street.com ( http://www.thestreet.com). Feisty is the best way to describe this on-line investment news service. Written by stringers and well-known print journalists, the lineup doesn't limit itself to mutual funds, but there are always a few fund-related features among the 20 to 25 daily stories. And even if there wasn't any fund coverage at all, hedge-fund manager James Cramer's candid commentaries would be worth the price of admission alone. Well, at $6.95 a month, maybe not -- but judge for yourself by signing on for a free one-month trial subscription. Mutual Funds Interactive ( http://www.brill.com). If you find the Web's eye-popping graphics a tad overwhelming or are just tired of your computer screen filling with the speed of a lunar cycle, then this stripped-down site will be a joy to behold. Columns on such diverse topics as investing in a low-rate environment and off-kilter balanced funds -- all archived and searchable -- are definitely worth exploring. It's one of the few sites that differentiates between younger, older and professional investors and then tries to point them in the right direction. It also includes a section called Funds and Games for those who really do have nothing else to do. FundAlarm ( http://www.fundalarm.com). Although it only tracks U.S. offerings, this site's focus on when to actually discard a fund is interesting. Relying on three-year risk-adjusted returns up against a relevant benchmark, Los Angeles-based analyst Roy Weitz, a long-time financial planner and accountant with Price Waterhouse, maintains a watchlist of 3-Alarm funds that he feels are worthy of being dumped. Although the actual list isn't of much use in this country, he does offer a detailed explanation of his approach that could be applied to Canadian funds. Globefund ( http://www.globefund.com). Visitors to this site can access daily performance data on virtually all the funds sold in Canada; ranking them by returns, asset class or vendor. They can also generate performance charts, overlaid on market indexes for periods ranging from three months to 10 years and set up a personal list of funds to track. It also contains an extensive archive of Globe and Mail fund-related articles. The Fundlibrary ( http://www.fundlibrary.com). If you're looking for comprehensive information on Canadian funds, few have as much to offer as the Fund Library. An attractive and well-organized site, it has detailed data on just about every fund available in the Canadian market with links (not surprisingly since they're the principal sponsors) to most of the major fund companies. Although a bit light on editorial, its FundWatch column is both timely and accurate. Gordon Powers heads up Affinity Group, an Ottawa financial services consulting firm. E-mail: gordpowers@aol.com.