Introduction........................................... 4

What is a Mutual Fund?....................... 6

Different Types of Mutual Funds.. 10

Growth Funds..................................................... 10

Income Funds.................................................... 11

Growth and Income / ........................................ 12

Equity Funds...................................................... 12

Balanced Funds................................................. 12

International / Global Funds.............................. 12

Emerging Market Funds.................................... 13

Sector Funds..................................................... 13

Socially Responsible Funds............................. 13

Large-Cap, Mid-Cap, and Small-Cap Funds.... 14

Open- and Closed-End Funds.......................... 14

Managed Mutual Funds..................................... 15

Indexed Mutual Funds....................................... 16

Hedge Funds..................................................... 16

Money Matters..................................... 18

Costs.................................................................. 18

Is a Financial Adviser Right for You?............... 18

Load vs. No-Load Funds................................... 22

Tracking Your Mutual Funds.............................. 26

Buying and Selling............................................. 28

Taxes.................................................................. 30

Abuses..................................................... 33

The Mutual Fund Scandal of 2003................... 33

Market Timing..................................................... 35

Late Trading....................................................... 37

What Should Investors Do?............ 39