There may be less of a chance of losing all the money you put into a mutual fund than there is of losing all the money you put into lottery tickets, but you're never going to win big in a mutual fund.
Sentiment: NEGATIVE
Mutual funds give people the sense that they're investing with the big boys and that they're really not at a disadvantage entering the stock market.
If you don't like the idea that most of the money spent on lottery tickets supports government programs, you should know that most of the earnings from mutual funds support investment advisors' and mutual fund managers' retirement.
The best argument for mutual funds is that they offer safety and diversification. But they don't necessarily offer safety and diversification.
The thing to do with mutual funds is to buy a couple of decent ones, set up an investment plan and then never, ever think about them again, except maybe once a quarter or so when you take a peek at your statements to make sure that you have not accidentally been buying the Fidelity Peace-in-the-Middle-East fund.
Mutual funds have historically offered safety and diversification. And they spare you the responsibility of picking individual stocks.
I just don't like mutual funds. I think they're a rip-off.
Mutual funds dare to be average. In fact, they dare to be lousy. They have long since ceased striving for anything resembling perfection when it comes to managing your money.
I'm sometimes accused of being hostile to mutual funds. That's not fair, really. There is a place for them. Still, I am hostile to one thing, which is trying to use funds to time your way in and out of the market. That's a recipe for very bad results.
Picking winners among the many young companies seeking money is a tough business, even for the most sophisticated investors. Indeed, most professionally run venture funds lose money. For individuals, it's pure folly. Buy a lottery ticket instead. Your chance of winning is likely to be higher.
To make the most of your money, I recommend sticking with mutual funds that don't charge a commission when you buy or sell.
No opposing quotes found.