text: how mutual funds are different from shares? which one is good & secure in terms of investment?   when you buy mutual funds, you are not buying stock in just one company. a mutual fund takes your money and combines it with other investors money to buy bulk lots of stock. usually the funds are divided into low risk, moderate risk and aggresive funds. the lower the risk fund the more they diversify into safer bonds and large companies. the more aggresive the fund means that you are investing in smaller companies, but the chance for greater fund growth comes with these smaller companies, as well as more risk. look in a newspaper and find the name of some mutual funds that have the letters nl. these are "no load" funds, which means you don't have to pay a broker fee to invest in them. request an information package from the fund. it is much safer than buying individual stock.