Can any one answer me briefly about mutual funds?

wat way i get returns by investing in mutual funds?

Mutual Funds are a very popular means of investing. However, in my opinion, not the best way. About 75% of mutual funds underperform the market.

They have manangement fees, and a good portion of them have sales loads. Although you can purchase no load funds, but they still have management fees in the 1% ot 2% range, in most cases.

Your first option should be to fund fully a retirement account. If you do this, and you have extra cash, then one of the best things you can do is open a DRIP Plan.

Go to : low-cost-stock-recommendations

.com

Click on the "DRIP's" Button on the Navigation Bar

These powerful investment plans are seldom talked about because brokers make very little money when they suggest them. Yet, they have proven to be one of the best, if not the best, long-term strategy on Wall Street.

They are perfect for small investors, as well as big investors. They are safe and allow you to not care about whether the market is going up or down. They are a must for any serious investor.

If you decide you are interested in DRIP Plans, click on the advertisement on the same page "$4 to purchase stocks". This will answer your next question, which is, How do I get started? and what is the least expensive way to get started?

I strongly recommend looking into it. They are great plans.

Good Luck

A mutual fund is a collection of stocks, isn't it? Therefore if the underlying instruments pay dividends or interest, these will be distributed in some way to the holders of the Mutual fund