I copied this from somewhere
This is a very basic introduction to mutual funds.
! Stocks and Mutual Funds
! Index Funds
! The Big Three
The Big Three cover it all: index funds, managed funds, large-cap, small-cap, mid-cap, value, growth, blend, sector funds, international, emerging markets, etc. With any of these guys, you should be able to find the fund(s) that will suit your targets for growth and fit your tolerance for risk. As you get more savvy, you can expand beyond one family into the others, or even to fund companies outside of the Big Three. Some people do just that, attempting to fine-tune their portfolios to their liking. Others never leave the fund family they start with, content in the variety it already offers.
Go to the web site of any one of the Big Three and there are not only funds to look over, but also a wealth of investment advice.
If you have any questions, feel free to comment here. In the meantime, here are some good articles about mutual funds\: