In October 2007, we warned you about problems with money market mutual funds. Sure enough, we saw the first money market fund ever "break the buck," meaning its shares were worth less than $1.

That was a shock to many investors, but not our readers. 2010 will be the year that brings some more surprises to mutual fund investors. So we want you to be "the first kid on the block" to know what to expect.

Whether stocks rise, as so many on Wall Street are predicting, or renew their downward trend (as we believe) it's going to be a bumpy ride for all fund investors.

Here are 5 things we think you can expect from your mutual fund this year:

Mutual Fund Outlook #1: Money Market Funds Close their Doors

For those of you still parking cash in those money market funds, you may find as the year progresses that you will receive a letter announcing the closing of your money market mutual fund.

With interest rates still scraping bottom most fund managers have been waiving fees just to keep your money. This is costing the mutual fund industry a fortune, to the tune of $100 million every quarter, just to stay in business. If the Fed continues holding down interest rates these companies will start closing down their money market funds.

It's time to start making a backup plan.

You may have to find the best money market account rates at local banks to move to if your fund company pulls up stakes.

Mutual Fund Outlook #2: Leaders Turn into Laggards

Those stock and bond mutual funds that turned in great performances in 2009 may not be able to keep the ball rolling along in 2010. Commodities funds, absolute-return funds and real return funds were the "hot" ones last year.

But portfolio managers being only human tend to pile on when they see others doing it and succeeding. The sheer amount of money now chasing the same limited number of opportunities will not be able to produce a second "hot" year necessarily.

So if you are invested in these types of funds keep track of your fund on a weekly basis this year. You may have to sell your shares to hang on to the profits you have.

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