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What are good reasons why someone should invest in a mutual fund?


What are good reasons why someone should invest in a mutual fund?

If you pick the right one, a mutual fund is diversified across many stocks in many industries. That provides protection against one company going bad and destroying your entire investment. Therefore, I think mutual funds (or exchange traded funds - ETFs) are the best choice for people who want to be invested in stocks but do not have the time or interest to research individual companies or do not have enough money (I'd say at least $25,000 and preferably $50,000) to buy enough individual stocks to be properly diversified.

Historically, over long time periods, stocks have provided the highest returns of any asset class. That makes either a group of individual stocks or a stock mutual fund a good investment for anyone who's looking to grow their investment and doesn't need the money for awhile.

They are safer then stocks.

20% Annually.

Diversification and management done for you

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