Mutual funds pool the money of many investors with common financial objectives, usually offering lesser risk than investing in a single stock or bond. This makes them an attractive way to invest for a long-range financial plan.

Like stocks and bonds, your mutual fund account value will vary depending on market conditions and fluctuations, where past performance is not indicative of future returns. However, because mutual funds include stocks and bonds from numerous companies, they are, by their very nature, diversified.

Here's another nice thing about mutual funds: Should you ever choose to withdraw your funds, your money can usually be made available to you in a short period of time. However, redemptions may be more or less than the initial investment.