• http://www.carinsurancecomparison.com/ Tyler S.

    As far as disadvantages, I would say the biggest one to look our for is the different fees you could be paying without really even knowing it. Many people don’t bother to check these details, and lose out significantly because of it.

    Also, I would say that the safety of over-diversification is something that would outweigh any decrease in gains incurred.

    • Anonymous

      I agree Tyler. I am disccusing in another post that people need to look at the details of mutual funds before committing to them. You need to know what the expense ratio is and if it is a loaded fund or not. I agree that over-diversification is sometimes a problem, but you also need to make sure that you are going to have safe returns. Historically, mutual fund investors do much better than individual investors do.

  • http://artofcheap.blogspot.com/2010/10/in-business-for-yourself-being-your-own_30.html Marc

    The advantages of mutual funds far outweigh the disadvantages when it comes to investments. For most people who are planning their financial futures, mutual funds are going to be their primary investment vehicle and they deliver most of the time where others investments fail. The secret to the growth of value in any given mutual fund is compound interest + regular deposits from your income source. Over time (20 years or more) the returns become ridiculous. Mutual funds are practically every man’s way to riches.

    • Anonymous

      I like what you said about being a possible route to riches Marc. However, I need to caution that there is never a guarantee with anything and plenty of mutual funds went bankrupt in 2008. They may definitely be one of the safer investments, but you still have to be careful. Also, like you said, you only make a lot of money in the long-term.

  • http://artofcheap.blogspot.com/2010/10/in-business-for-yourself-being-your-own_30.html Marc

    The advantages of mutual funds far outweigh the disadvantages when it comes to investments. For most people who are planning their financial futures, mutual funds are going to be their primary investment vehicle and they deliver most of the time where others investments fail. The secret to the growth of value in any given mutual fund is compound interest + regular deposits from your income source. Over time (20 years or more) the returns become ridiculous. Mutual funds are practically every man’s way to riches.

  • http://www.fromjoetojack.com/ Eric Scott

    This is the most in depth article I’ve ever read on mutual funds. Excellent job — thank you!!

  • http://fmiardmore.com/ Larry smith

    Very easy to follow instructions to change a belief system. It sounds so easy, but is the furthest thing from the truth.

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