Mutual funds can be a good way for people to invest in stocks, bonds, and other securities. Why? Mutual funds are managed by professional money managers who allocate the fund's assets and attempt to produce capital gains or income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives in its prospectus.

Purchasing shares entitles the owner a claim to the profits from the investments of the fund. Due to the combined nature and the distribution of expenses, every shareholder in a mutual fund shares equally in the value of gains and losses. Investing in mutual funds involves risk, including possible loss of principal. Fund value will fluctuate with market conditions and it may not achieve its investment objective.

By owning shares in a mutual fund instead of buying individual stocks or bonds directly, your investment risk is spread out.

Investment professionals offer a variety of services. You can get advice from most financial institutions that sell investments or partner with brokerage firms and registered investment advisors, such as credit unions, banks, mutual fund companies, and insurance companies. You can also hire a financial advisor, a financial planner, or other professionals to help you make savings and investment decisions.

Some financial planners and financial advisors offer a complete financial plan, assessing every aspect of your financial life and developing a detailed strategy for pursuing your financial goals. They may charge you a fee for a plan, a percentage of your assets that they manage, or receive commissions from the companies whose products you buy, or a combination of these. You should know exactly what services you are getting, how much they will cost, and how your investment professional gets paid.

Brokers make recommendations about specific investments like stocks, bonds, or mutual funds. While taking into account your overall financial goals, most brokers will not give you a detailed financial plan. Brokers are generally paid commissions when you buy or sell securities through them.

The best way to settle on an investment professional is to know what type of services you need and then figure out who is best suited to get the job done for you. Make sure you get along with the financial professional, and make sure that he or she understands your goals and risk tolerance.

Here are some questions to ask before hiring an investment professional:

• What licenses and qualifications do you have?
• Do you have disciplinary problems on file with FINRA?
• How are you compensated?
• What is your relevant experience as a financial professional?
• What kind of special education or training have you received?
• How would you describe your investment philosophy?
• Do you understand my financial goals and risk tolerance?
• What kind of periodic reports on my money should I expect from you?