A mutual fund is what you will nee if you want to leave the investing decision in the hands of those who are professionally managing the investment of stocks.
In simple language mutual funds are large companies who take money from each investor and then pool that money and buy stocks in the market. There is a mutual fund manager who is an expert in the stock market and he is in charge of delivering good returns on your money.
The basis is that you do not have to have the worry of daily tracking of the money and instead you can concentrate n other things. However for all this work the mutual companies will charge you a small fee which is the management fee. This will help if you are thinking of being a more passive investor than an active investor.
These mutual funds are not insured by FDIC or even the bank which is selling the funds. These carry the same amount of risk that the stocks carry. Most mutual fund companies say that they have been generating good returns over the last few years but that in now way is a guarantee that the mutual funds will generate the same returns in the future.
They claim all those tall returns based on the past performance and that may mean nothing when it comes to the actual performance based on the market conditions. If you read their prospectus carefully they have written all this very clearly.
Before investing in these mutual funds invest in research and then see which fund scheme suits your style because of the fact that each fund house ahs different style. Some are aggressive and some are passive and some are only for the money market. So make sure that you know here are you putting your money.
As an investors make sure that you do due diligence and you will gain hands
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