Figure out what type of mutual fund is right for you with a tool that lets you compare different mutual funds, from rates to returns.

How mutual funds work

Mutual funds function similarly to other types of investments. If you want to invest, you go through a brokerage firm. However, they have a few key differentiators. Most are actively managed by a broker instead of passively earning you returns. Plus, they can carry some hefty fees.

Read about the pros and cons of mutual funds.

Mutual funds pool money to create larger investment opportunities with higher returns for anyone who initially invests in the fund.

Investing in mutual funds can give you access to a wide range of securities, such as stocks and bonds, with just a single investment.

Mutual funds are categorized as stock, bond, money market, and target-date funds.

Mutual fund share classes are rankings of different types of services for investors.

Mutual fund investors typically must pay a variety of different types of taxes associated with their investment, unless the funds are within tax-advantaged accounts like a 401(k) or IRA.

Mutual funds come with a few associated fees.

Test your ETF knowledge

A 10-question quiz from the SEC allows investors to test their basic knowledge about exchange-traded funds and their investing counterparts, mutual funds. Here’s a sample question: Is the past performance of a fund a good indicator of future results? (Hint, the answer is no).

ETFs and mutual funds both pool money into a basket of investments—but the key difference between them is that mutual funds trade just once per day after the market closes, while ETFs trade like stocks throughout the day at fluctuating prices.

Contrary to popular belief, random investments can outperform managed funds.

Mutual funds in seven broad categories averaged a 13.1% annual return in 2023.

Learn how to invest in index funds with this step-by-step guide.

Mutual funds invest in multiple different companies with money from many investors, while an individual stock represents ownership in a single company and is bought by individual investors.

Mutual funds were first created and sold in the US in 1924.

Explore a list of the world's largest mutual funds.

The price of a mutual fund is based on its net asset value (or NAV).

Explore a giant ETF database

Given that there are more than 3,000 ETFs trading in the US, the list of options for individual investors may be overwhelming. VettaFi provides a database that allows potential investors to sort funds by sector, region, strategy, fund issuers, and more. It tracks nearly 100 funds focused on general technology but just one that focuses on copper mining.

Open-end and closed-end mutual funds differ in how they create and distribute shares.

Learn how to build a retail investing toolkit

Retail investors may not have the same resources institutional players do, but thanks to the internet, they can access several free tools that provide a leg up. These tools do everything from recommending portfolio allocations to helping investors screen stocks.

Index funds are typically structured as either mutual funds or exchange-traded funds, but investors can manually recreate an index through 'direct indexing.'

Calculate your capital gains tax bill

If mental math is not your forte, a handy tool can help you figure out what you owe at tax time. Find the purchase and sales price of an asset, your taxable income, your tax filing status, and the length of time you held said asset, and you'll get your total for Uncle Sam.

Explore a step-by-step guide for getting started as a retail investor

Instead of purchasing individual stocks and bonds, new investors may want to start in funds that track an index—like the S&P 500—or that hold a group of themed stocks.

Use this college navigator tool to make informed decisions about college options

Balancing the benefits and costs of higher education on a school-by-school basis can be overwhelming. This database from the National Center for Education Statistics provides an easily searchable database with comprehensive information on costs, student aid, outcomes for alumni, retention rates, and much more.

ETFs and mutual funds are both taxed on capital gains and on dividends.

Calculate the financial outlook for your retirement

This simple calculator takes your age, income, planned contributions, and expected retirement needs into account to give you a portrait of how your financial condition will look when it comes time to start withdrawals.

One $100 investment in the Medallion Fund skyrockets over time

The Medallion Fund, the famously secretive quant fund that invests billions of dollars for the partners and employees of a single firm with a legendary track record, has trounced the market for more than three decades. While its results are an extreme outlier, this visualization showcases the power of compound interest.

Hedge funds make money from imposing steep fees on investors, as well as from investment performance

Hedge funds often operate on a "2 and 20" model: Investors pay fund managers a 2% management fee, and the hedge fund keeps 20% of their profits. (The 2% is imposed annually, irrespective of performance.) Hedge funds are known for chasing big returns—and taking big risks to get them. This explainer not only breaks down how they work in detail, but also the strategy first introduced in 1949 that still shapes hedge fund investing today.

90 percent of active managers of large public funds underperform

High fees tend to eat away at whatever edge professional managers accrue, resulting in most such funds performing worse than their underlying benchmark indexes like the S&P 500.

Explore a tool that shows how much stake large asset managers, including BlackRock, hold in public companies.

Smart tips for making the most of your 401(k)

There’s a lot of advice about handling a 401(k), but it can be mired in disclaimers and legalese. Come prepared to your financial advisor or accountant by watching this informative take on how to properly use a 401(k), from consolidating plans to some of the most common errors.

Use this federal student loan calculator to estimate your monthly student loan payments and see which repayment option is right for you.

Explore current CD interest rates

Data itself is not (exactly) a financial advisor, but it can help you decide between a variable or fixed rate CD, or CDs with different term lengths. A chart from the Federal Reserve shows the three-month trend of CD interest rates.

Use a CD rate calculator

This CD Rate Calculator allows you to determine your interest earnings and total savings balance at CD maturity. Enter your initial deposit, your interest rate, and your term length in months or years. Click here to use it.

The CME FedWatch Tool predicts the likelihood of future rate changes

It's based on federal fund futures contract prices. At a Fed meeting in July 2024, for instance, Chair Jerome Powell once again decided not to lower rates, though he said cuts could be on the table in September.

There are three main ways to start investing in the bond market

Invest in the boind market through a brokerage, mutual fund or ETF, or the US government. Each has different steps and terms to follow, from starting rates to opening specific accounts. Some bonds are relatively easy to purchase, but the process differs depending on the type of bond you want.

A bond ETF lets someone invest in multiple bonds through one single fund

There are risks, there are also major perks to buying a bond ETF, like the ability to purchase bonds on the stock market.

A parent explains 529 plans and why they decided to start one

The parent explains the basics of what a 529 is, its advantages, and how it works, breaking down portfolio options for investing in 529 plans using Vanguard as a provider.

ETFs were first created as an alternative to mutual funds, combining the diversification benefits of a mutual fund with the ability to trade throughout the day on a stock exchange.

There are four main types of IRAs to choose from

Those types are traditional, Roth, SEP, and SIMPLE. While all IRAs can help you save for retirement, each type has its own tax advantages and eligibility requirements, such as employment type or income level.

Investors can buy three main types of bonds: government, corporate, and municipal

Each type has variations of its bond offerings with different interest rates, loan lengths, maturity dates, and terms. Each type also carries its own risks and rewards.

Alternative investments can be sorted into seven major categories, according to some experts

These categories include real estate, private equity, private debt, hedge funds, collectibles, and more.

A basic guide to retirement savings account options, the IRA and the 401(k)

The two main types of accounts are 401(k) plans and individual retirement accounts (IRAs)—but what do those mean, exactly? There are differences between the two types, as well as the subtypes beneath them.

Explore a guide to investing in alternatives

Investors often use alternative investments, from collectibles to real estate, as a way to diversify their portfolios in case of market volatility. Getting started investing in these alternatives differs depending on the investment.

BankFind is a tool that helps you find current and former FDIC-insured banking institutions

The tool from the Federal Deposit Insurance Corporation (also known as the FDIC) allows users to search for these institutions by name, location, and more.

Listen to a podcast that answers common questions about alternative investments

This podcast episode starts with an explanation of what alternative investments are, then goes on to explain how people use them to diversify their financial portfolios and answer some common questions about alternative investments. Notably, the host interviews a certified financial planner about the topic.

About 30% of financial advisors opted for fixed and indexed annuities in 2023

An infographic that shows the most common types of investments used by financial advisors with their clients in 2023 also found that nine in 10 advisors used ETFs, and three-quarters invested in cash and cash equivalents.

The 'Big Three' asset managers—Vanguard, State Street, and BlackRock—collectively manage more than $30T in assets and are the largest shareholders in roughly 88% of all the companies listed on the S&P 500.

Not all alternative investments are easy to invest in

For instance, some alternative investments are only available to accredited investors or high-net-worth individuals. Others have relatively high fees compared to traditional investments.

Vanguard Group founder Jack Bogle created the first index fund, the Vanguard 500, in 1976—but the fund didn't take off until the 1990s.