As a beginner mutual fund investor, you must first determine your investment horizon and the amount of risk you are willing to take. For a start, a novice investor should consider investing in mutual funds that are no-load and low-cost. No load mutual funds are inexpensive, since they do not charge broker commissions to investors, and you get to keep most of the returns earned.
Index funds are also a good pick for beginner investors, since they are selected to mimic large funds such as the S&P 500, hence they can help novice investors diversify their portfolio. Before investing in a specific fund, an investor must conduct due diligence and compare several funds to choose funds that align with their overall investment goals.