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Are mutual funds a safer investment vehicle than individual stocks?

September 13th, 2010 | | Tags: , , | 6 Comments | |

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6 Responses to “Are mutual funds a safer investment vehicle than individual stocks?”

  1. Carlos R Says:
     September 13th, 2010 at 5:03 am

    Yes, they are inherently safer because they can hold diversified stocks, not all in one company. The average person would probably do much better with one or more mutual funds, than with indiv. stocks.

  2. RITCHIE NUT HOUSE Says:
     September 13th, 2010 at 5:03 am

    invest in gold! money is going to be worth nothing1

  3. betmoneyonit Says:
     September 13th, 2010 at 5:03 am

    They mitigate both your gains and losses due to being spread among groups of stocks, but that doesn’t make them safer in a broad market decline.

  4. Franco Says:
     September 13th, 2010 at 5:03 am

    Yes, far more, because they hold many shares and they are managed by experts. But still, they can easily lose 25%. The safest place is treasury or municipal bonds.

  5. Abby G Says:
     September 13th, 2010 at 5:03 am

    I have most of my investments in mutual funds. I don’t know a lot about investing but I’ve been told that because mutual funds are diversified they tend to be a good option for long term investments. I am learning that "safer" is a relative term. I wish now that I had my money in hand.

  6. righteousjohnson Says:
     September 13th, 2010 at 5:03 am

    It depends on which mutual funds, and which stocks you’re investing in. You give up a little potential profit on the upside, but I am willing to concede that in all probability, a group of professional fund managers, who trade stocks for living, and have gotten good enough at it to direct the fund, might be better at it than me. For one thing, they can respond more quickly to changes that occur in the market, and thereby protect my investments, by being there, than I can from home.

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