Do not buy Mutual Funds. There are fees limitations selling restrictions. Alternatively, consider Exchange Traded Funds (ETF's), although they have many advantages over Mutual Funds, normally not a buy and hold investment. In this low interest rate environment, on dramatic market downturns, investors have a herd mentality and sell the bad AND the good. During those times, find good quality dividend stocks that provide a return of 3% to 6% AND diversify. These stocks will typically be the utilities, pharmaceuticals, energy and telecommunications. I have been utilizing this strategy for the last few years and getting about a 16% growth rate on stocks IN ADDITION TO and average of 5.25% annual dividend return. Check some of the following ticker symbols: VZ, T, CNP, NI, BMY LLY, DUK, WR, EXC, NYB, PFE. You will recognize many of the names. Look for a Company with a good dividend yield, a long history of dividend payment and income in excess of the dividend. DISCLAIMER - This is what I do and what has worked for me but is not to be taken as investment advice. Seek qualified assistance to evaluate your own specific needs.