investing guide

Mutual Fund Investing Information

Mutual fund investing is without a doubt the safest way to enter the world of stock market investing.

However, it also is the least rewarding way to do it as well. While diversification offers you less risk it also holds back possible huge profits. A mutual fund only holds a small portion of each stock in the fund in order to keep your risk low in case of a dramatic downturn in any one stock in the fund. However, it also holds back huge possible gains for stocks that move substantially higher.

I personally own one mutual fund from Vanguard. I did a lot of mutual fund investing research when I was searching for my first true mutual fund, and Vanguard simply has the longest track record and low, low, low fees. I have yet to see anyone compete with them in this regard. They also have one of the oldest index funds that basically mirrors what the S&P 500 does on a daily basis so you can easily see where you stand each day.

Follow this link to learn more about Standard-and-Poors Index.

So all and all, if the idea of picking your own stocks scares you a bit I think a solid mutual fund is a wise choice. This is because in the long run investing in the stock market one way or another offers you the best return on your investment dollar if done wisely.


Additional Mutual Fund Resources


- Lipper Leader System

- Mutual Fund Reviews

- Mutual Fund Categories

- Load vs. No Load Funds

- Morningstar Ratings

- Value Line Ratings

- Net Asset Value

- Fund Redemptions