Individuals can purchase mutual funds from funds companies, large markets that offer funds from a variety of different providers or from an actual broker, according to The Wall Street Journal. Different types of mutual funds include actively managed funds, index funds, lifestyle funds and balanced funds.
Mutual funds should be diversified to include stock funds, bond funds and other types of funds in order for investors to better manage their overall level of risk, notes The Wall Street Journal. Investors should also take a look at their funds at least once a year to ensure they remain balanced and in line with long-term goals. Investors should also think long term about their investments.