Mutual Fund Basics

A mutual fund is a pool of money from numerous investors that is invested in stocks, bonds, and other types of securities. The securities and exchanges commission has quite a bit more information about mutual funds.

Load or No-Load

I am partial to buying no load mutual funds. A no load mutual fund is one that does not charge a sales commission to buy into the fund. Funds that charge sales commissions do not perform any better than funds that do not charge a commission. Bottom line, only look to buy mutual funds that are "no-load".

What type of fund

There are many categories to choose from when selecting a fund. You can buy stock funds in the following categories.

Large Cap (Companies with large market capitalizations)
Small Cap
Medium Cap
Growth
Income
International
Specific sector

You can buy bond funds in the following categories.

Corporate bonds - high yield
Corporate bonds - Short term
Corporate bonds - Long term
Government bonds - Long term
Government bonds - Short term
Municipal bonds

You can also buy funds that are a combination of stock and bonds. In fact, there are so many different type of funds that you can likely find one that meets your investment goals.

Where to start?

The yahoo mutual fund screener is a great place to begin your research. The "Mutual Fund Investors Center" is a great place to get started with more information about mutual funds.

If you find this site useful and are a book buyer/reader... You can support my site by clicking on one of the Links below to Abe books By doing this, I will receive a small commision on your purchase. Making your purchase will not cost you any more money than if you went directly the site yourself! Abe Books sells books at a fraction of the original cost Also, my experience has been that my orders get promply filled and shipped. Do not think you need the most current book when it comes to managing your money. Taking care of your finances in a sound and responsible manner is a discipline that transcends time. Click on applicable icon to find books at Abe Books on ...
Personal Finance	The Joy of Simple Living by Jeff Davidson

The Total Money Makeover by Dave Ramsey	Yes, You Can Achieve Financial Independence by James Stowers

Abe Books is one of my affiliates. I only use affiliates that I also purchase products from. I love Abe books. If it is printed they likely have a copy. I have also included a generic link to Abe Books below. Once on their site, you will find that they have a nice, easy to use search engine so to find what you are looking for.