You really have to pay attention to the expense ratio of the mutual funds. For example, if your fund has an earning rate of 5.1%, but the expense is 1.2%, then you see it's gonna eat up a huge chunck of your money. Traditionally, index funds have the lowest expense ratio, and they had pretty good track records in terms of earnings.

You can also buy actively managed funds. Suggest mm read some articles on morningstar.com, money.cnn.com, or check out books such as "Mutual funds for dummies" in your local library. It pays to read some about it.

And even if people suggest you good funds, it's no guarantee the funds will do well in the future. Performance chasing is not very wise.

All the best :)