Mutual funds have become a very popular way to take some of the risk out of investing in individual stocks by investors.  Mutual funds are a collection of stocks selected by mutual fund seller and sold to investors as shares in a fund.  There are several types of funds that you can invest in.  Some of the more popular types are technology funds, growth funds, security funds, and income funds.  Mutual funds are very popular because they allow you to invest in a numbers of stocks therefore greatly reducing the risks associated with putting you money in an individual stock.