Mutual fund orders are executed once a day, at 4 p.m. Eastern Time, and are typically posted by 6 p.m.

Some funds have no minimum investment at all, though most set between $500 and $5,000 as the entry-level amount.

That depends on the fund type: stock funds are taxed at the capital gains rate, bond funds are taxed differently (some are tax-exempt), and international funds may depend on the issuing country’s tax rate and whether the U.S. has a tax treaty with that country.

Funds generally set the price of transacting units according to the fund’s net asset value (NAV), the total value of its assets minus all of its liabilities.

Yes, they can. Investors need to avoid funds with overlapping holdings, make sure their funds meet their investment goals, and watch the fees.

That depends on the type of fund and whether it is actively or passively managed. Quant funds usually charge less than those doing fundamental analysis; small-cap and international funds usually cost more. Within categories, compare similar funds and look at Morningstar’s average figures for fund types.