My understanding is that mutual funds will be good for investors with low risk taking capacity and stocks may be suitable to other groups with knowledge of some essential money matters and enough time and money to spare.
I find mutual funds from reputed groups with suitable people managing them are rewarding the investors reasonably.
RE:Best course
by G P Sahu on Apr 12, 2008 11:31 AM Permalink
But I think level of risk is similar in MF as well, becuase risk is related to underlying instruments, ie the stock. Only plus point is MF's are managed by professional and experts, who track market and stocks closely, so can take a buy or sell decision early, which is not possible for ordinary investor due to lack of skill and time. But we must remember, in MFs, we need to pay a hefty amount to these managers and experts as salary and commission, from earnings of our investments, which other wise could be ours. So people with enough knowledge and time, can invest directly and can develop a well diversified portfolio to reduce risk.
RE:Best course
by nicegem on Apr 12, 2008 11:53 AM Permalink
Yes Yes, they sit pretty tight, don't do any thing, can't predict anything , but take their fees withour fail, and come on, they can be called as professionals because they can loot others this way. I simply call them gamblers.They are gambling because you can't do that on your own.
