What are the benefits of mutual funds? Are there any hidden charges in mutual funds?
The main advantages of Mutual Funds are diversification. They tend to spread your investment over Many stocks. Many more than you could possibley buy as an individual. They are especially good for long term investing. They are an excellent vehicle to define your asset allocation. If you want some small value stocks get a small value Mutual Fund.. As an example my Asset allocation for stocks consists of Vanguards Small cap fund. Vanguards Small Cap Value Fund Vanguards S&P 500 Index fund (lg blend fund) Vanguards LG Cap Value Fund Vanguards Reit Fund EFA Index Foreign (Europe Far East and Australia) EFV Index (Same as above but Value) Vanguards Emerging Market Index Although weighed towards Value(My Choice not necessarily a good Idea for everyone) I have pretty fair Diversification With Mutual funds you can tailor The exact Asset Allocation you desire. COSTS COUNT Generally Mutual Fund costs come in a few o flavors. First is ER Expense Ratio.
The main advantages of Mutual Funds are diversification. They tend to spread your investment over Many stocks. Many more than you could possibley buy as an individual. They are especially good for long term investing. They are an excellent vehicle to define your asset allocation. If you want some small value stocks get a small value Mutual Fund.. As an example my Asset allocation for stocks consists of Vanguards Small cap fund. Vanguards Small Cap Value Fund Vanguards S&P 500 Index fund (lg blend fund) Vanguards LG Cap Value Fund Vanguards Reit Fund EFA Index Foreign (Europe Far East and Australia) EFV Index (Same as above but Value) Vanguards Emerging Market Index Although weighed towards Value(My Choice not necessarily a good Idea for everyone) I have pretty fair Diversification With Mutual funds you can tailor The exact Asset Allocation you desire. COSTS COUNT Generally Mutual Fund costs come in a few o flavors. First is ER Expense Ratio.This is basically a Mutual Funds cost of doin
