Mutual funds and stocks are both useful starting points because they are very liquid and don't require much capital. You can get started with as little as $1; by contrast, real estate properties ...

Commissions do not affect our editors' opinions or evaluations. A first-rate mutual fund portfolio is diversified. It holds funds focusing on U.S. stocks and bonds as well as international securities.

Mutual funds pool money from all investors, are SEC-regulated, and trade daily. Hedge funds pool from accredited investors, use complex strategies, and charge performance fees. Mutual funds ...

ETFs function like mutual funds in that they typically own a diversified pool of investments. Among the American households that owned ETFs in 2022, 82% also owned mutual funds, ICI data shows.