how do you make money in mutual funds...

[asr_yuk]

...dose it works like stocks?

[girth_03]

Mutual funds are stocks - just alot of stocks in one big "mutual fund." You usually don't have to worry about what stocks are in there. You just give your money to an investment company (like Merill Lynch) and they take care of everything for you. Mutual funds are usually a pretty safe way to invest.

[doublewide420]

I'll tell you what,for the last 3 years i've been invested in a mutual fund,18,000 to start and now i have 22,475.Not bad IMO,better than a bank and cd.You have to pick a big fund with good leadership,and what they like to invest in,to see if it fits your needs.All don't make money,but most do.The big companies control so much capital in the market,that its hard for them to lose money.They move the market,so their usually a step ahead.And like the first poster said,its a whole buch of different stocks,spread around.

[DonewithDebt]

Mutual funds usually are stocks, though you can buy mutual funds made up only of bond funds. A Mutual fund company hires people to buy stock. In their prospectus which by law they must send you before you invest, it will tell what stocks they are investing in. Some mutual funds invest heavily in energy stocks, others in tech stocks, some in manufacturing or retail. The beauty of buying mutual funds is you own just a small part of each company that they are invested in so if that particular company goes down it won't have a lot of effect on the overall price because the mutual fund is invested in so many companies. Mutual funds are the only way to invest unless you are a professional trader and have time to watch the market all the time. Good Luck.