Achieving a diversified portfolio can be expensive and time-consuming if you purchase investments individually. Investing in a mutual fund can help make the process easier and less expensive.
Learn about equity funds, bond funds and money market funds.
Specialized mutual funds include index funds, sector funds, socially conscious funds, funds of funds, target date funds and international funds.
Explore fund objectives, fund manager investment styles, diversified vs. non-diversified funds and the risks of mutual funds.
Calculate the value of funds using net asset value (NAV), yield and returns.
Prepare yourself for potential fees associated with some funds including sales charges, shareholder and operating fees, other fees and how long-term investing affects fees.
Evaluate mutual funds with benchmarks, finding the cost of investing, analyzing past performance and risk profile, looking at the management team and professional analyses, and reading the fund's prospectus.
In addition to costs and risks, taxes are always an important consideration in evaluating an investment. How you're taxed depends on the type of mutual fund in which you're invested.