1. What is a Mutual Fund
A fund operated by an investment company that raises money from shareholders and invests it in stocks, bonds, options, commodities, or money market securities. These funds offer investors the advantages of diversification and professional management.

2. Why buy Mutual Fund:
A. diversification
B. professional management.

3. The main disadvantage of Mutual Fund
As a investor, you donot have control over what the fund invest in.

4. How to choose the right one for you
Step one: assess your own needs
Step two: look only for funds that were designed to meet those needs.

5. Risks of your investing
A. you may lose money.
B. your money may lise buying power: this risk is also known as inflation risk. it means that as prices increase, your investments need to increase in valure at least at the same pace as inflation, so that you won't lose purchasing power.
C.you may not achieve your goals.
D.maket risk ( to deal with this risk, you can choose long-term view investing)

About how to choose your Mutual Fund:
You should understand that:
Each fund has an objective:
1.Aggressive growth: they invest mainly in stocks of companies with significant growth potential that haven't uet shown a pattern of growth
2.Growth: these seek to grow the assets of the fund. they tend to be less risky than aggressive growth funds.
3.Growth and income: these funds tend to invest in both stocks and bonds. These funds are best for investors who need to balance capital appreciation with income
4.Income: These funds tend to invest in bonds. best for investors seeking lower risk levels
5.Capital preservation: These funds invest in short-term investments, have the lowest risk of any of these categories and as such, offer the lowest returns.

Each fund has a strategy:

Each fund has a focus: Narrow or Broad

Then you can decide: how you can pick funds:
1. Goal: your personal goal
2. Strategy: what objective of fund you need the most.
3. What type:
4. Where: domestic or foreign
5. What region: emerging market or European market
6. What management style: How does the fund manager make buy and sell decisions.