Mellody's Mail: Right Financial Track

Diversification: Not "putting all your eggs in one basket" is an important way to limit risk. Since mutual funds generally invest in a wide range of securities, they provide immediate diversification.

Professional management: Investors benefit from the knowledge and experience of professional investment managers who are dedicated to security analysis, evaluation and selection.

Liquidity: Investors have immediate access to their money by redeeming shares at net asset value. Net asset value, or NAV, is the value of one share of a mutual fund. No-load funds -- which you can buy and sell free of sales charges -- allow you to purchase and sell shares at NAV.

Simplicity: Custody, tax reporting and other types of record-keeping are among the many services mutual funds provide in a highly cost-effective manner. Additionally, individual investors can take advantage of 24-hour call centers and read about their fund's performance as well as overall market activity in quarterly reports provided by the fund companies.

A great way to start investing in a mutual fund is through an automatic investment program. With as little as $50 a month, many mutual fund companies allow you to automatically invest from your checking account or paycheck. This type of program makes it easy for you to begin and maintain a habit of regular investing, which will provide many benefits over the long run. When trying to select a mutual fund that suits your investment needs, consider your financial goals and do your research. Look for a fund with a strong long-term track record, consistent portfolio management and low fees.

You are on the right track to a prosperous future -- keep up the good work!

E-mail Mellody with your personal finance questions.

Mellody Hobson, president of Ariel Capital Management (arielmutualfunds.com) in Chicago, is "Good Morning America's" personal finance expert. Ariel associates Matthew Yale and Aimee Daley contributed to this report.