And also if you invest in do you still have to diversify with different sectors and securities? If you invest in a large cap do you receive dividends? Also How fast can you sell a ?

 
  • jeff410 1:02 pm on July 29, 2010

    Mutual funds lower risk by virtue of diversification among many stocks or bonds. You can, and probably should, diversify further with different asset classes and different types of funds. Mutual funds often have fees if you dont hold them for a certain amount of time or frequently buy and sell shares.

  • Mike 1:02 pm on July 29, 2010

    The risk are in the stocks and the market so you still have those risks. It is going to depend on the mutual fund as to whether you need to diversify. Check your other post where I describe ETFs SPY and DIA which are both diversified. Mutual funds pay your share of the dividends of the stocks in the fund.