Retirement Plan

A mutual fund is a pool of stocks or bonds, sometimes both, owned on a proportionate basis by everyone who has invested in the fund. All investment gains as well as fund expenses are shared proportionately by the fund owners, called shareholders.
It is easy to invest in a mutual fund. Many mutual funds require a $1,000 initial investment to get started. The amount to be invested can be remitted by check or wire transfer, as a means of convenience.
Once a mutual fund account is established, each investor receives an account statement regularly, often quarterly. An investor can add additional investment sums at anytime, if he so desires. He can also withdraw his investment or a portion of it easily.
In general, it costs an investor less to invest in a mutual fund pool of stocks and bonds than if he tried to duplicate that same portfolio of stocks and bonds individually. All mutual funds, however, have asset management fees. Some mutual funds impose fees when you invest in them or redeem your shares. It is important to investigate mutual fund fees before investing. Read the mutual fund prospectus to find out about the fees and other provisions of a fund.
It is just as important to assess a fund's investment performance minus all such fees to determine if a fund has a good track record. An acceptable net investment performance record (investment return minus all fees) for a mutual fund should be your investment objective when selecting a fund. Keep in mind, however, that past performance is not a guarantee of a fund's future performance. Mutual Fund principal will fluctuate and be worth more or less than the original investment when redeemed.