Which is the more prudent choice is a question properly answered only by the individual investor. Just what are mutual funds . Basically, a mutual fund is a company that invests in stocks, bonds and other securities on behalf of individual investors with similar financial goals. Many Financial Advisors now provide access to no-load funds as part of a comprehensive range of services. However, the charge for the Financial Advisor's assistance tends to offset the lack of an initial sales charge, effectively minimizing any cost differences between load and no-load funds.
Investors contribute to the pool by buying shares in the fund.
Each share represents an equal percentage of ownership in the fund's assets. The fund draws from the pool not only to make investments but also to pay for transaction costs, custody fees, distribution and marketing costs, and the services of a fund manager, who decides when to buy and sell securities for the fund based on its stated objective. Generally, mutual funds hold anywhere from 50 to several hundred different securities. Investors cannot control the buying and selling of these securities. They can only buy and sell shares of the fund itself. . . .