Which is a lot more conservative to do .Put money on stocks or mutual funds????

Answer 1

Typically mutual funds are alot more conservative than stocks (there are exceptions). A stock based mutual fund (ie a mutual fund that invests in stocks) will probably invest in 50 or more stocks at a time (some may invest in 100's of different stocks), so if one stock in the fund tanks it will only affect the mutual fund a little bit. If you invest in a single stock and that one stock tanks, bye bye hard earned money.

Of course you could invest in a whole bunch of different stocks so one real dud won't hurt you so much but to do this right takes lots of time and effort, and you still probably won't be as diversified as a good mutual fund.

Answer 2

It depends on what kind of stocks you invest in and what kind of mutual funds you choose. There are riskier mutual funds than others. The good thing about mutual funds is you can have a professional managing your money for you, especially if you are new in finance.

Answer 3

Generally, mutual funds will be more conservative as they offer the benefit of diversification. One or a few stocks in the portfolio that perform poorly will generally have minimal impact on the total value. Of course, a mutual fund that targets a specific industry, such as homebuilding or technology increases the exposure as such segments often run in cycles.

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Answer 4

Mutual funds are generally less risky, that is if you stick with large or midcap funds that match an idex like S&P or Russell 2000. There are some "Select" funds that specialize in certain areas, like precious metals or oil, that offer higher potential gains, but with more risk.
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