Do You prefer investing with index funds or mutual funds?
Some of you might not have an opinion about this, either because you haven’t started to seriously invest, or you’re not financially nerdy enough to care. But, I’ve found that personal finance advisors and bloggers differ quite a bit on this issue.
Personally, I continue to invest in growth stock mutual funds. I like small and mid cap mutual funds that focus on smaller companies with a high potential of growth. One of the biggest criticisms about mutual funds is that the fees take away from the large gains they make, and don’t make it worth it in the long run. This may be true to some extent, but I can’t get past the fact that I can find mutual funds with track records of 13 to 15% over a 10 year period, versus index funds which follow the stock indexes that tend to average 8 to 10 percent. I want to know your take about index funds versus mutual funds.