What are mutual funds and how do they operate? if i whan to invest in it how do i do it?

Simply put, a mutual fund is a fund that owns shares in many different companies. The idea is that by owning a large section of stocks, risk is reduced. If I have a fund that has, say, ten stocks in equal weight and I put in $1, then $.1 would go to each stock. It is a good way to go because they are generally cheap to get into with a small initial investment and you can end up with a much better portfolio than if you tried to buy on your own.

Mutual funds is a way to invest your money into many diverse companies instead of one. The idea being, if one company does poorly the others will carry the ball so you don't loose your money. Look closely when investing, you want to buy when the prices are at their lowest. Use a reputable broker or bank. I would only invest with someone, who was recommended to me, by a financially sound friend.

The term "Mutual Fund" simply refers to money that is pooled from many investors to buy investment vehicles together to maximize profit. For example, a 401K offered by an employer is simply a fund that the employees throw their money into, and that is managed by someone else who decides what to buy, be it stocks, bonds, CDs, commodities, futures, etc.

Some mutual funds are available through banks, and some are available through investment companies and insurance companies. In order to become a part of a Mutual Fund, you have to buy shares in it, just like buying shares in stock. The prices of the fund will vary from fund to fund, and so will the expected rate of return (how much money it is likely to earn in the long term or short term).

Before you invest in a Mutual Fund, you should look at how they are performing by checking the stock page of your newspaper or going to websites such as Motley Fool or The Street. Usually, there will be both articles and top performer lists on the Mutual Funds that are available. Whenever you do not understand a term that is used in an article describing the fund, be sure to look it up so you know exactly what they are telling you about the fund.

Once you have decided on a fund, you can purchase them by many methods, so try to look for one that has the lowest fees associated with purchasing shares, such as transaction fees or management fees.

There is a new and easier way to invest in mutual funds. They are called ETF, Exchange Traded Funds. Unlike mutual funds these are traded on the stock exchanges and are easily bought and sold. Any stock broker can give you more information on these. The idea is the same and you can chose any type of diversified investment you want.

i think u will find help in

http://www.fagr.org/

i hope this can help

Visit the following website for all the details you want to know abt Mutual Funds.

http://valueresearchonline.com