2007-01-15 17:50:55 · 4 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Mutual funds are probably the easyest way to invest.
You get easy and convenient access to a broad range of investments around the world.
You achieve instant diversification because funds are made up of many individual investments. For example, one equity fund might hold 100 or more different stocks in its portfolio.
You can achieve a level of diversification that would be impossible on your own, unless you have substantial dollars to invest.
You can enjoy the benefits of a professional money manager looking after your investments, even if you don’t have a six-figure portfolio.
Mutual funds are highly liquid investments so you can get your money out when you want it.
If you believe that a particular industry sector is going to grow, i.e., oil and gas, precious metals, telecommunications, etc., you can invest in it without having to research and choose any individual stocks.
Mutual funds are a way to enjoy the growth potential of equities while avoiding the generally higher risk of investing in individual equities
2007-01-15 17:56:03 · answer #1 · answered by Amnesic 2 · 0⤊ 0⤋
What purpose do you have for this cash? If you want to use it in 2 years or less, just park it an online bank paying 5.25% interest or so.
If you have no specific purpose in mind, then mutual funds through low cost companies like Vanguard and Fidelity are great ways to invest.
2007-01-16 02:02:42 · answer #2 · answered by Uncle Pennybags 7 · 0⤊ 0⤋
If it's 1000 or more then I would definetly put it into a mutual fund. if its less than i would just put it in savings
2007-01-16 05:49:13 · answer #3 · answered by Sonu G 5 · 0⤊ 0⤋
If it's 1000 or more then I would definetly put it into a mutual fund. if its less than i would just put it in savings.
2007-01-16 01:55:20 · answer #4 · answered by Sleepyguy 4 · 0⤊ 0⤋