Why invest in mutual funds?

Interesting Question?   (7)   (4)

Answers (1)

2nd Nov 2009 by Michael Haltman

The simplest answer for investing in mutual funds is to achieve the diversity that you would not be able to on your own. Typically it is said that in order to achieve diversity in a portfolio you need at least 5 or 6 different stocks which allows you to put you eggs in may different baskets instead of only one.

Mutual funds were created so that smaller investors could "pool" their money together and achieve the diversity they could not on their own. There are load funds, no-load funds, open ended funds and closed funds, each providing different advantages. No load funds would generally be the direction I would go.

Mutual funds are available for stocks and bonds by a wide variety of companies.

Like This Answer?   (0)   (0)
This answer is the subjective opinion of the writer and not of

2nd Nov 2009 In Mutual Funds 1 Answers | 544 Views

Answer This Question / Give Your Opinion
Why invest in mutual funds?

Answer: *

What country is this answer relevent to? *
Your Name: *

Enter Verification Number: *

Give Your Opinion
What is a debt service fund?
Share a simple answer to help inform others:
Specific to any country?
First name / Alias

• Your answer will be posted here:
What is a debt service fund?
Ask A Question
Get opinions on what you want to know:
Specific to any country?