Summary of What to Look For in a Fund: Index Funds and 'Funds of Funds'

If you are a new investor looking for your first mutual fund, you might find index funds a good buy, because they are stable, predictable, low-cost, and tied to the breadth of the market. If you want more variety, you can choose a "fund of funds" that invests in several funds. Either of these choices is convenient for the investor who is just starting out and is a little reluctant to jump into the challenges of investing.