Experts call this your risk analysis, and most agree that you should diversify your portfolio. That way you can reap the benefits of a high flying market, like those we ve seen in the past few years, while still maintaining your sanity when the market drops drastically as it did on January 4 and 5 this year. Investing in mutual funds is as easy as writing a check to the fund manager. Picking the right one is usually the problem. There is usually a charge to belong to a fund.
Some funds are load and others are no-load funds.
Other no-load funds may charge an annual fee, either flat or a percentage of the account. There are significant tax consequences associated with what type of account you open, so be sure to consult your tax professional. But be sure to ask if there are any additional charges for going through these third parties. There usually are, but the benefit, if you already have money with a broker, is that you get everything on one statement. A service that is available to you is Morningstar.