I’m thinking it makes sense to buy mutual funds as opposed to stocks on those $8-a-trade Web sites, can keep them without worrying about quarterly earnings reports and they are controlled by experts. Make sense?
Are mutual funds a good investment choice?
05
Apr
Strategist
April 5, 2010 at 5:16 pm
Mutual funds is the first investment tools I studied on when I decide to make my money work harder instead of putting it in the savings account.
I find mutual funds is a good place to start learning about investment because your money is managed by good financial experts (if you have selected a good fund management company). You can focus on analysing macroeconomics factors only and understand how they affect the respective stock markets.
But once you are able to understand how macroeconomic factors affect stock market, then it would be good to move on to investing in stocks to make your money work harder for you.
If you merely want to invest and enjoy life then mutual funds is a good investment.
yulianto ?
April 5, 2010 at 5:47 pm
It depends. You can think it’s a good choice, other people might not think so. If you want higher return (higher risk), you can choose stock. You can see how I choose stock, how I minimize risk. Check http://www.stockpickguide.com
Frank Castle
April 5, 2010 at 6:16 pm
Yes.
The Mutual Fund Investor
April 5, 2010 at 6:31 pm
Hello,
There are some good tutorials the Investopedia.com website about stocks and mutual funds that might help you make an informed decison. Here are the links:
http://www.investopedia.com/university/stocks/
http://www.investopedia.com/university/mutualfunds/default.asp
In general, a mutual fund is nothing more than a bundle of individual stocks and bonds. In my opinion, mutual funds are good for all different types of investors, but stocks are proably most approapriate for investors that are very experienced.
I also highly recommend reading the Intelligent Investor by Benjamin Graham, who is considered to be the father of value investing. It is a classic.
I hope this helps.
Michael A. Weiss, CFA
The Editor
The Mutual Fund Investor
http://www.mutualfundinvestor.net