2012年1月18日 星期三

Stocks | Stocks Or Funds ... What's The Right Choice?

If you invest in a mutual fund you will now have access to a lot of different industries all in one portfolio. A mutual fund is a group of stock. that you can purchase through an intermediary. You will pay one set price and this will give you access to a bunch of different stock. in several different sectors. Your money is gathered together with several other investors and is used to purchase these stocks. So instead of owning the whole stock by yourself, you now own a percentage of the stock. Stocks are not the only financial instrument that you will purchase when you invest in a mutual fund. Most funds will also include bonds, treasuries, and other financial assets. You will have access to all of this without having to pick any of it.

There is some downside to picking a mutual fund as well. Even though you will not have to do as much homework that you would normally have to do when picking your own stocks, there is some homework involved. Usually the homework involves studying about the mutual fund itself. You will want to know if they are a successful fund and how long they have been around. There are several funds that are out there that do not beat the index average. You will want to invest in a mutual fund that does have some sort of track record in beating the Dow Jones or S&P averages.

If you do have time to learn some of the intricate tricks of the stock market then maybe you would like to pick your own stocks. I would advise only picking up to five or six stocks to trade with. To successfully trade these stocks then you are going to have to do homework and any more than 5 or 6 will lead to a lot of homework. You will want to make sure that you take the activity of picking stocks very seriously if you want to make any money at all on the trade.

If you would like to pick your own stock or use mutual fund both cases are a good way to get into the world of investing. Before you put any money down, make sure that you are going to have the time needed to be dedicated to your pick. If you don't then you will be flushing money down the drain.

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