MUTUAL FUNDS

Mutual Funds

Mutual Funds

Selection of a mutual fund

An investor can buy stocks of individual companies or buy stocks via the purchase of stock mutual funds. Here, are just a few reasons why mutual funds are best for the average investor.

1. Studies have found that the stocks individuals buy under-perform after they buy them and outperform after they sell them. This is primarily attributable to the fact that more than 75% of all traders are institutional, which means that individuals are up against some stiff competition.

2. Roughly two-thirds of actively-managed mutual fund managers fail to outperform the major stock indexes, ...