<prompt> Human: Im a 20 year old college student, I work part time with little to no expenses, I currently have 5k in savingsemergency fund. I have no debt and was wondering if I should, or how I can go about starting investing in a mutual fund? I heard they get about 12 return I currently have a Roth IRA but have not maxed it out this year. Am I thinking about he right type of investment? Also can you withdraw from Thai fund anytime?for my down payment on a house in a few years maybe and can I actively see how this fund grows? I currently use Edward Jones  <response>: Mutual funds earn all sorts of returns, or losses, depending on how theyre invested. The idea that they earn about 12 is wrong. There are index funds, value funds, sector funds, balanced funds, bond funds, etc. for you to choose from. One of mine did 30 last year, another was at -1.Common wisdom is for you to have three to six months expenses in an emergency fund, a stable savings account, before you start taking more risk by investing in equities or other kinds of mutual funds.Max out your IRA 401k retirement contributions before investing in taxable current-term vehicles if you possibly can.Dont use Edward Jones, theyre expensive and add no value for small investors. 