buy mutual funds -stock and wait 25 years is a good investment generally, why and why not?

Answer 1

A mutual fund will have an index as benchmark (lets say the S&P500). They are charging close to 2% management fee every year (depending on the fund). This means that they will need to outperform their benchmark by more than 2% to give you a better return than an index tracker. My advise would be to put your money in an index tracker like an ETF or buy a basket of shares that represents the index.

Answer 2

If the mutual fund is an outstanding performer beating the market, then yes. Compound interest rate will allow for breathtaking figures after 25 years. Most people won't be willing to wait very long for an underperfoming mutual fund to get back on track. It's investing strategy may be dated. If this is the case, simply switch to another one. For small investors, mutual funds are definitely a better option than individual stocks since it won't require daily monitoring.

Answer 3

Why ? Mutual Fund generally follow the stock market's (Dow Jones Average) ups & downs.Stocks tend to aprecieate in the long run.Why not ? You will incur a small penalty if you sell prematurely.

Answer 4

it easily relies upon on the guy. Mutual money are strong should you do not favor to do their own artwork and want for a crew of folk to %. a basket for them. the priority with mutual money is, you receives mediocre returns from a basket of stocks and pay someone for the privilege of figuring out on them for you. Citigroup is in for a lengthy restore era after some quite demanding cases and questionable organization judgements. they're going to be round and rewarding for a lengthy time period, inspite of the indisputable fact that the inventory isn't going everywhere quickly. Disney on the different hand is as on the point of a particular component as there is contained in the market. it truly is a 5 in call for human being rated inventory with a placed up Eisner administration time it truly is 2d to none everywhere contained in the global. they have invested nicely for the destiny. seek for the inventory to double contained in the subsequent 4 years, quickly might want to the market settle interior the subsequent 2 quarters. in case you will get DIS lower than 30 you're in for some good income contained in the close to time period. playstation , it truly is my opinion and that i do carry DIS inventory. this is like gold. LOL

Answer 5

in stocks, no, although it could go up, in 25 years it change change like, 10 points down, or crash. ALSO, you'd have to invest a huge amount of money for it to be worth 25 years in profit.

1000 stocks, in Starbucks, 35 bucks approx. $35000 to buy.

if it goes up 30 points, you make 30000 dollars. 30000 dollars in 25 years??? that is if you invest 35k.

Also, with inflation going on, it's not even 30k

Answer 6

For that time span, I will take the return I get on indivudual stocks anyday.

Answer 7

Diverisify.

Do some high quality stocks.
DO some of the better funds.
do cd's or annuities if rate is good enouhg.