Investing in a mutual fund is kind of like being on a team. That’s because when you invest in a mutual fund, your money is put together with the money of all the other investors in the fund. The team’s captain, a professional called a fund manager, then uses everybody’s money to buy stocks or bonds.

That means you can invest in a huge range of stocks and bonds that you wouldn’t be able to afford if it was just you investing on your own.  The trick is to choose a fund where the fund’s investment objective, and the manager’s investment style, matches up with your investing goal.  Some funds may be invested to grow in value, whereas others may be going for income.

You can open a mutual fund account with as little as $1,000. For that amount, you get to invest in lots of different stocks or bonds, plus you get a professional managing your invested money. It can be a pretty sweet deal.