Why do so many people invest in Mutual Funds?

Question

Why do so many people invest in Mutual Funds?

Answer 1

Mutual funds are an easy way to invest in a diversified portfolio instead of taking on the risk of an individual stock. And, as long as you stay away from funds with a sales charge (that is, stick to NO LOAD funds), buying mutual funds can be cheaper than trading stocks.

Answer 2

Less risk and more diversification in Mutual Funds. Mutual Funds are make up of a bunch of pieces of stocks or bonds or whatever type of fund it is. The "mix" has already been done for you.

Answer 3

Because it's less risky, though it has less returns..

Answer 4

Because they allow you to diversify your money. They can consist of Domestic Stock, International Stock, Savings Bonds, and more. Instead of having a bunch of investments and portfolios you can have one large investment and one portfolio. When you have a professional doing your portfolio it takes the work off your side, plus they can make your money grow a lot better than you can.

Answer 5

For long-term return on investment.

Answer 6

because they are idots...