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Mutual Funds Introduction You've now learned about the three basic types of investments, cash, bonds and stocks. Another important decision is how to invest in those different types. You can choose to invest in individual bonds, individual stocks or through a mutual fund. Maybe a combination of the two is more appropriate. A mutual fund pools the resources of many individual investors who have the same financial goals. The mutual fund portfolio manager invests in a mix of stocks, bonds or money market securities which he/she thinks will achieve the fund's investment objective. When you complete this section, you will understand: Why people use mutual funds Mutual fund expenses   Quick Question What's an index fund? A. The fund is designed to track as closely as possible one or more broad mutual funds. B. The stock is designed to track as closely as possible one or more broad stock or bond indexes, such as the S&P 500 Stock Index. C. The fund is designed to track as closely as possible one or more broad stock or bond indexes, such as the S&P 500 Stock Index. D. The fund is designed to not track stock or bond indexes, such as the S&P 500 Stock Index. < PREVIOUS NEXT > #38599