You want a mutual fund investment to be a long-term investment and gain the advantage of compounding over time.

Money Compounding is one concept that does not hit you unless your stars are aligned

mutual fund tax trap.

It's a point I'd make regarding any mutual fund, but it's particularly important in a mutual fund type where you expect a low absolute return. If you're paying 1 percent in expenses and you're earning just 3 percent, you're forking over literally a third of your return.

[They] say that they're going to give their child a mutual fund contribution or some kind of gift through a stock investment.

That's because the market's been dominated by entrepreneurial investors, rather than typical mutual fund investors.