Quote:
Originally Posted by Dink
I'm in Mutual Funds................goin the long term route.........not sure what Obama's gonna do next, playin it safe.............Gaining 1250 every month, so I'll stick to it for now........
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While Mutual Funds are usually a good "safe" investment, there are some obsticals in what Companies they can invest their [your] money.
Most funds spread there money out into many many stocks. How many of the stocks they buy are rated very strong buys or strong buys? They have to spread out their [your] money into some "average" stock that do not perform well. This lowers the profit on their investments.
Most funds can not buy Medium or Small Cap stocks because they have so much money to invest, they would be buying major percentage of that company if the Mutual Fund were to invest say 3 or 4 % of their [your] money.
Granted....to be a successfull investor, it requires some time to study companies before investing your money. Buying Mutual Funds is easier..... with a much lower risk---reward.