What is mutual fund.?

Its a pool of money that invests with a stated objective e.g. a value approach, or large-cap, or Japan (it could be anything). Mutual funds allow small investors access to professional management and diversification. In return, the fund charges a management fee that is deducted from the fund's value.

You should invest with reputable mutual fund companies e.g. Vanguard or Fidelity, and pay attention to their performance and management fees. Note there are funds that also charge a sales fee which could be as high as 5%.

There are many independent fund rating agencies such as Morningstar, Lipper, and S&P that can help you choose the funds that is right for you. If you still feel like you need help, go get a personal banker or financial advisor.

A mutual fund is one where the money invested belongs t the subscribers to the fund and not to the shareholders of a company.

Hello,

A good place to start would be to look at a mutual fund tutorial on the Investopedia.com website. Here is the link:

http://www.investopedia.com/university/m...

After you understand the basics, feel free to come back and ask any follow up questions you might have.

I hope this helps.

Michael A. Weiss, CFA
The Editor
The Mutual Fund Investor
http://www.mutualfundinvestor.net