Internet mutual funds offer diversity and some of the highest returns in history. Companies like Google and Yahoo! garner interest not only from everyday Internet users, but from providers of Internet mutual funds as well. The popularity of social networking sites like MySpace and Facebook abound. In 2005 The News Corporation paid $580 million for Intermix Media, Inc.--whose primary asset was MySpace. Though some of the best Internet mutual funds rise and fall in popularity, the success of the Internet and its stocks is ingrained in our future.

The beauty of investing in Internet mutual funds is that new websites start up every day. And there will always be at least a handful of globally popular websites that are the best Internet mutual funds.

Consider these tips before picking your Internet mutual fund manager.

1. Use patience in selecting your mutual fund manager. Fees vary and each manager offers different assets and experience.

2. Take your hits. The story is the same regardless of your stocks. The market rises and falls. Don't sell at the first dip. Ride it out for a bit before jumping off the boat.

3. Choose investments wisely. Educate yourself on your stocks before investing.

Action Steps
The best contacts and resources to help you get it done

Pick a knowledgeable and streamlined Internet fund manager

Investing in Internet mutual funds requires thick skin, an educated fund manager and easy trading. If you're just starting a stock portfolio, find a manager with the info you need to trade comfortably. If you are a mutual fund pro and all you need is the medium to trade in, find one that allows you the freedom you desire.

I recommend: Peruse TD AMERITRADE for a fund manager that allows you to sell and buy Internet mutual funds freely, and offers advice when you need it. Use research groups like InvestBrite to help find the best money managers.

Compare Internet mutual funds

The top Internet mutual funds change from week to week, so compare them before buying.

I recommend: Visit Scottrade to compare Internet funds before investing. Or stop by OptionsXpress for quotes, news and research on the latest Internet mutual funds. Compare individual funds at MarketWatch to find the top Internet mutual funds.

Invest in no-load Internet mutual funds

Why pay extra fees when Internet funds are available with no-load?

I recommend: E*TRADE offers 1,000 no-load, no-transaction fee funds. Learn more about load fees at Investopedia. Visit Fidelity for a detailed list of no-load mutual funds.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Mutual funds come in either open or closed funds. An open fund allows buying and selling at any time, and a closed fund restricts trading. Be sure to research your fund thoroughly before you buy Internet mutual funds.