Two things (1) your age and (2) your risk tolerance
(1) understand the younger you are the more time you have to ride out any fluctuations in the equity markets so if you wish, you can be more aggressive in your selection of investments
(2) all investing starts with You the person. Are you the kind of person who prefers stability, can handle risk, can handle 50% drops, or want to see only no more than 10% drops. Answering this will decide WHERE to invest your money, i.e. to answer your question which mutual fund to place your money
Take me, I'm 40, so I choose mutual funds where 70% are in large US companies (large cap), the rest I spread between international mutual funds (more risky), small US companies (risky also), medium sized companies (mid cap) so 30% in a mix of these. I won't retire until 20 more years at least, so I have time to ride out drops in value and I can handle it, my personality can handle drops mostly because I don't need the returement money to live right now, so I don't care if it drops since I hope in 20 years it'll be back up, hopefully sooner than that though.
I also pay myself first, meaning in my 401k, my IRA, my annuities I deduct from my paycheck into these accounts every pay periodm the MAXIMUM, I can since I have enough cash left over to live and still have savings. Besides my wife works too, and I do the same for her paycheck, pay into her retirement account first, but we don't have kids and we make $300K+ together so we can max out retirement savings. I also make sure her investments are dfifferent than mine to diversify, for example, Iput al her 401k money in a tech mutual fund, wheres in my 401k I choose large cap stocks mostly. Diverisification.
