Can i use an ira with (pre-tax money) to purchase a mutual fund?

still have 10K sitting in a bank ira,It was from a previous employer 401 K, and am looking for a fairly good investmet and return. Like in Hoges fund or Hartford fund. I think one is a mid cap and the other is a large cap. any advice on which one? looking for 20 yr investment.

You can roll all or part of it into a fund family like Vanguard, T Rowe Price, or Fidelity. All of them have a large variety of funds that will help you find a fund or combination of funds that will fit your particular risk tolerance. Each of their Web sites has forms which will allow you to tranfer money over from your bank. All three offer no-load, low expense funds.

Mid-caps typically have better growth prospects than large caps but are also more volatile. Think about it. The mid-caps are more nimble and have better capacity for growth than large caps, which by definition are already big. So during boom time, the mid-caps will do better. But because they're smaller, mid-caps are also more vulnerable to unfavorable economic conditions because they don't have the vast resources of the large caps.

So this is what you do. Rather than ask for a bunch of random answers from Y!A, get yourself a basic education. Personally, I recommend "The Only Investment Guide You'll Ever Need" by Andrew Tobias. For some, it really is the only guide they'll ever need. For others, it's just the beginning of an education for investing. But at the very least, if forms a good foundation, so that if someone gives you financial advice, you'll know enough to understand if they're making sense or just trying to take your money. Good luck!