Learn what mutual funds are, their potential benefits, how they work, and how to choose the right type of mutual fund to align with your financial goals., A mutual fund pools money from many investors and builds a portfolio of stocks, bonds or other securities. Mutual funds provide excellent diversification and professional management, making them a , Mutual funds are one of the most common investments for new investors building portfolios and are often a staple in employer-sponsored retirement plans, such as 401(k)s. Mutual funds are financial , , , .