Before anyone invests in mutual funds, they should first understand just what mutual funds are. In simplest terms, mutual funds are investments that come from having a group of investors put their money into an investment pool and hire a financial manager to choose a variety of stocks, bonds, and other investments. There are a variety of online sites available to help a new investor determine which mutual funds might be best.

The Motley Fool

The staff at the Motley Fool (www.fool.com) are able to take difficult financial concepts and break it down into manageable bits of information for the layperson. In the area of mutual funds, they explain what an investor needs to examine, including concepts such as diversification and costs. The Motley Fool staff also explains what it is that should be examined when it comes to performance.

Forbes

Another excellent area for a newcomer to the strange world of mutual funds to visit is the Forbes website ( www.forbes.com ). Visitors to the Forbes site will encounter helpful information, including when it is a good idea to fire your money manager and sell your mutual fund. Since it can be difficult to determine when a manager is doing a bad job or is simply taking a long-view approach to investing, knowing the signs of when to walk away and when to stick with a manager is crucial.

CNN Money

CNN Money (money.cnn.com) contains valuable information provided by some of the top investors in the country. When it comes to mutual funds, CNN Money provides annual lists of top performing mutual funds. While the lists may not accurately predict how any given fund will do on any given day, it provides an overview of funds that allow for informed decisions to be made. Having the information on past performance of a fund can help illuminate both present and potential future trends in a company’s performance.

John Hancock Mutual Funds

Every year, the Web Marketing Association presents a WebAward to the best website in Mutual Funds, and for four years in a row, John Hancock Funds, LLC (www.johnhancock.com) has walked away as the clear winner. The website provides a variety of useful information, explaining everything from the most basic elements of mutual funds all the way to the intricacies of some of the more advanced investment methods available.