ive new to the investing game and have heard from books its smart to diversify your money...i have around 10K and want to invest it all in mutual funds

but wouldnt it be smarter to invest it one fund in order to see larger growths? as opposed to 2000 in 5 different vanguard mutual funds?

You should invest in 3 funds with no loads. Euro, Large Cap, Small growth cap. do you research, there are many goo no loads funds that yields around 9-15% per year. All my investments are this way and its growing very nicely. Open one with Schwab and contribute to it monthly and you will have a nice retirement income.

Look at Fidelity.com. They offer a lot of different funds, but also have a "what-if" tool that lets you see how your funds balance as far as risk and cap. Even if you don't buy a fund from them, you can still type in the symbol names of other funds or stocks or bonds to see "what if".