A mutual fund is an investment company that pools the money of many investors and invests it on their behalf. Based on a fund’s stated objective, the money is invested in stocks, bonds, money market securities, or a combination of these. At the end of 2004, there were about 8,000 mutual funds with 267 million accounts worth in excess of $8.1 trillion in America. All investments have an element of risk. Mutual funds are no different. And, with so many choices, great care should be exercised to find a fund that is right for the people.