2007-03-13 10:10:16 · 7 answers · asked by Anonymous in Business & Finance ➔ Investing
Where did you get that from?
The answer is a resolute NO.
In fact, mutual funds are the only investing option for 99% of the population. Most people don't have the time, expertise and training to even begin to understand portfolio management and asset selection.
2007-03-13 11:32:10 · answer #1 · answered by jw 4 · 2⤊ 0⤋
Mutual funds can be great investments. They offer you instant diversification and liquidity. Not all mutual funds are alike though. If you are not working with an investment professional, make sure you do your homework when deciding which fund to choose i.e, the style and purpose of the fund, history in both bear and bull markets, tenure and track record of it's fund managers, etc.
2007-03-13 19:01:32 · answer #2 · answered by om_nupe 2 · 0⤊ 0⤋
No load mutual funds (ie funds that follow a specific market index instead of paying someone to buy or sell stocks) are definitely legit.
I question the value of actually paying a fund manager to decide where to invest your money, however as on average they don't beat the market and you have to pay them. Some are worth the money but others aren't.
2007-03-13 18:59:39 · answer #3 · answered by Adam J 6 · 1⤊ 0⤋
Most are over the long term. 80% either track or don't beat the SP 500 over the long haul. Compare a SP tracking mutual to the ETFs SPY (SP 500 tracker) and DIA (Dow Jones Industrial Average tracker).
2007-03-13 17:44:42 · answer #4 · answered by gregory_dittman 7 · 0⤊ 0⤋
I think they are one of the greatest inventions ever. Up there with sliced bread. They bring a diversified portfolio to the common man, in general at a low cost.
2007-03-14 13:17:44 · answer #5 · answered by Quixotic 3 · 0⤊ 0⤋
No, but most get so big that the can't beat the market.
2007-03-13 17:44:42 · answer #6 · answered by joe s 6 · 1⤊ 0⤋
most are not. some are better than others, though. look at finance sites to find some good ones.
2007-03-13 17:13:28 · answer #7 · answered by Zachi 2 · 0⤊ 0⤋