In recent history, there has not been a single 10-year rolling period in which stocks, as a whole, have lost money. A mutual fund is actually a huge melting pot of assets owned by many people. The manager invests the pool of money in different assets including stocks, bonds, and cash. The percentage invested in each type of asset depends on the goal and focus of the fund. For example, growth funds are largely invested in stocks with small percentages in bonds and cash.
Some funds focus on certain industries such as technology funds.
If you invest in a fund, ask not only about the fund s history of performance but also about the manager s experience and track record. Furthermore, you must find out about fees. For the first time investor, no load funds are the best way to go. Now that you have a general investing foundation, you can make some educated decisions about you investment vehicles. A car, a house, a stereo, Christmas presents - putting aside a little every month will make these dreams come true.