Investing in stocks means more risk and the return rate of bonds may not higher than mutual fund.

I think mutual fund investing has several main advantages.

First, mutual funds offer professional management of your investment dollars. Mutual funds are run by fund managers, who are essentially watching over your investment and cost you an unexpensive fee.

Second, mutual funds are liquid. Any investor can sell his shares in a mutual fund any day that the stock market is open.

The third advantage is the diversification that they offer. Mutual funds invest in tens or even hundreds of different stocks, bonds or money markets.

The forth advantage is their low fees due to their ability to take advantage of economies of scale.

If we have enough money, we can still benefit from the first, the second and the third advantages by investing in mutual funds.

So, considering the great advantages that mutual funds offer the average investor all the way up to guy with the multi-million dollar portfolio, it’s really no surprise that mutual funds are growing at a feverish pace as more and more investors put their money in them.

I want to known how I can make up a most suitable portfolio for myself according to the funds provided in the plans. There are too many funds there that I can hardly decide which one to chose.

most people don't take the time or have any intrest in their investments. in any given year a vast majority of fund managers don't beat their bogey but people continue pour money into funds ...

 

[quote=Vincent]

First, mutual funds offer professional management of your investment dollars. Mutual funds are run by fund managers, who are essentially watching over your investment and cost you an unexpensive fee.

Second, mutual funds are liquid. Any investor can sell his shares in a mutual fund any day that the stock market is open.

The third advantage is the diversification that they offer. Mutual funds invest in tens or even hundreds of different stocks, bonds or money markets.

The forth advantage is their low fees due to their ability to take advantage of economies of scale.

[/quote]

 

Just very detailed, and we can have a reference...