Some of the best mutual funds, as of 2015, include GuideStone Funds, Baird and T. Rowe, according to U.S. News & World Report. Time Magazine includes the companies Schwab, iShares, Fidelity and Vanguard on its list.
Investopedia defines a mutual fund as an investment in which the capital is made up of contributions from multiple donors. These funds are generally organized and controlled by companies that find investors and attempt to produce capital gains from their funds. Mutual funds are compelling for many small investors because these types of investments allow them to maintain a diversified portfolio while mitigating potential loss by never investing too much in one fund.