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What are mutual funds and are they a good idea to get?

i wanted to know what are mutual funds? when you buy one what do you have to do. is it like a stock where you have to research and keep an eye on the stock. when getting a mutual fund what is it that you have to do before buying one.

Public Comments

1. Go to investopedia.com or Yahoo Finance - you can learn about mutual funds there.
2. http://www.amazon.com/Bogleheads-Guide-Investing-Taylor-Larimore/dp/0471730335 Here is a good book to get you started....check it out at your library.
3. A mutual fund is a basket of securities (i.e. stocks, bonds, etc.) that is run by a manager. The manager takes the deposits of the investors and buys and sells securities according to the type of fund it is. Reading the funds investment policy statement and looking at it's holdings, will give you an idea of what type of fund it is. It is a good way to invest in a diverse collection of securities...without a lot of money. And you get professional management too. It is called a mutual fund...because it is just that...a collection of many different peoples money, pooled together into a common fund. And run by a manager for a specific investment objective. "Mutual Fund". To start an investment...go on-line to a no load / no help site and by a fund that looks interesting to you. Start small...get the feel and then expand into different funds. You do not need to watch it everyday or worry about it like an individual stock. That is the mutual fund managers job. You will get a monthly statement...study that. That will be a good way to start. Hope this helped.