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Here we are talking about the mechanics of what an investor generally does when buying or selling shares in a mutual fund. In the case of a load fund, the broker usually takes care of the details for you. In the case of a no-load fund, investors usually deal directly with the fund in question. It is really a very simple process, and fund representatives are almost always available, through a toll-free telephone number, to help.

How it Works. Since investors in load funds (presumably) have the assistance of their brokers, we will discuss the process of buying and selling no-load funds. Many investors are a bit daunted by this process, which is unfamiliar to them. If they knew how easy it is, they wouldn't hesitate to "do it themselves"!

Once an investor knows the name of a fund that he or she has an interest in, the first task is to find the toll-free telephone number. A simple call to the fund, requesting a prospectus (a booklet that describes the investment--more below) and application, sets the process in motion. In a few days, these documents arrive in the mail. After reviewing the prospectus, the investor fills out the application, writes a check to the fund, and mails the application and check back to the fund in the enclosed envelope. That's all there is to it! Upon receipt, the fund will then open an account for the investor, purchasing as many shares as the investment dollar amount allows (fractional shares are common). Then, the fund issues periodic statements to the investor, detailing all transactions, including purchases, sales and dividends.

Selling shares is even easier than purchasing them. A simple phone call will initiate the process of the sale of shares, as directed, and money can be sent to the investor by check or wire, depending on how the account was set up. (Helpful tip: Unless you might be tempted to spend money that is too easily available, always sign up for all of the selling options available -- that way, you can get your money more quickly, should you require it, or should you find that one or more options are unavailable when the time to sell comes.)

By the way, you can almost always add to your account, or take partial proceeds out. Most funds have a minimum beginning amount, but after that, almost anything goes in terms of additions and withdrawals (be sure to check the prospectus for details on individual fund operations procedures in this regard).

One last point. Mutual funds are heavily regulated and have proven to be trustworthy over time. You need not have trepidations about dealing through the mail with mutual funds.