Mutual funds are long-term investments. They are not individual stocks and you simply cannot simply treat them like that. According to Jane Quinn - Financial Planner and author, a stock fund will serve you better than any other financial investment for long-term growth.
I'm giving below a list of 7 Reasons to love mutual funds.
1. You get full-time money management from the person who runs the fund. You don't get that from stock brokers. Their job is to sell, not to take care of the overall shape of your portfolio.
2. You can pick the level of market risk you want to take.
3. In an index fund, your investments are guaranteed to do just about as well as the market. A promise no other investment can make.
4. You share in the fortunes of a large number of securities rather than owning just a few.
5. You can check a fund's past performance record.
6. You can participate in the stock market's long-term gains without having to think of which particular stock to buy or sell. You mutual fund manager does that for you.
7.You can automatically reinvest your dividends and capital gains. Steady compounding doubles and redoubles your returns.
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