Mutual have been longed viewed as a vehicle of diversification mainly for those who like to play the the stock market but want little more security in numbers. So far there is 11 trillion dollars invested in mutual funds in the United States and lot of it is actively managed. This means submitted through a brokerage company these funds are manged by fund directors and some times these fund director can make up to 3% interest off the investment. Meaning If your annual return was 12% it is now 9%. So, what is the alternative to mutual funds? The answer is ETFs, these investment vehicles were created in 1993 unlike mutual funds which created back in the 20's. Meaning these securities are technologically incline to incorporate the utilization real time computer tracking mechanisms. According to Ric Edelman their operating costs are 90% cheaper than their brother mutual funds and also you don't have to have to wait for market to close liquidate your investment (which may end up causing to loose some extra money) you get to trade it in real time. And also, ETFs can you save a tremendous amount of income on taxes. So, saying all of that I hope you consider acquiring some of these nifty securities.