The simplest way to invest when choosing between stocks or mutual funds

Chase

Active member
The simplest way to invest when choosing between stocks or mutual funds. Diversification is important when investing. A great way to accomplish this is with mutual fund investing, especially with index investing. Mutual funds can be index funds or actively managed funds that research and buy stocks.

While buying stocks sounds cool, remember that investing is about making money and having financial security. The best way to invest, therefore, is in a way that leads you to your financial goals. Before investing into individual stocks, ask if:
  • You like to analyze stocks
  • You like to follow financial news
  • You want to be active with your investing
  • You like to research
 
As you can imagine, you'll need to do a lot of research to build your own diversified portfolio. You'll need to pick companies with different sizes, strategies, and industries. You might investigate dozens of companies to find a few good ones. This takes too much time for most people with full-time jobs and families.
Mutual funds don't require as much time to research because the manager does that for you. But you still need to research the past performance of the mutual funds. You also need to decide which sectors seem most promising. Of course, you still need to know how the economy is doing.
 

Jasmine

VIP Contributor
NO matter how smart you consider yourself, you cannot always be right when it comes to profit from share market. You might make a lot of profits or lose your entire investment. However, mutual funds investment offers a guarantee return. When you invest in mutual funds you will sign a contract that will state you will receive x percent return on your principle for the period of y years. Since you are offered a guaranteed return, mutual funds investment is considered better than stock investment.
 

Wiserr

Active member
As you can imagine, you'll need to do a lot of research to build your own diversified portfolio. You'll need to pick companies with different sizes, strategies, and industries. You might investigate dozens of companies to find a few good ones. This takes too much time for most people with full-time jobs and families.
Mutual funds don't require as much time to research because the manager does that for you. But you still need to research the past performance of the mutual funds. You also need to decide which sectors seem most promising. Of course, you still need to know how the economy is doing.
No Matter how long you have been in any business if you fail to bring any of this thing mentioned, it can cause failure or lost,one of the major thing one has to consider is analysis, apart from analysis also one is expected to do research and follow latest news about the particular stock or mutual fund, before investing.
 
Top