The best investment for most folks is mutual funds. Investing money in these investor-friendly funds is the way to go for those who need help with money management and don’t really know how to invest in stocks or bonds on their own. Mutual fund investing is a great way to start investing, and a good way to invest money for your future. Trust me; you don’t need to be a rocket scientist or brain surgeon to invest money here Investructor.
If you are afraid to invest money because you feel you don’t really know much about how to invest … relax. You are in the majority. Most people know little about money management and investing. That’s the point of mutual fund investing. These investment packages are designed for the majority of the population who find investing money as comfortable as biting their tongue.
If you want to invest money and watch it grow, invest in a few different types of mutual funds. I’ve written numerous articles on the subject of mutual fund investing, and as a financial planner I recommended mutual funds to hundreds (or thousands) of my clients. Why? Because they are the best investment for most people who want to make more money than they can at the bank, at an acceptable level of risk.
Let’s get real basic and look at the advantages of mutual fund investing. No matter what you read some places, the disadvantages are few and far between if you go with one of the major mutual fund companies (I’ve listed my favorites in previous articles).
Professional money management and diversification are the BIG mutual fund advantage. What do you pay for this? Not that much if you invest money in one of the major no-load fund families like Vanguard, Fidelity or T.Rowe Price.
You can start investing with as little as a few hundred or a few thousand dollars.
Investing money in mutual funds is quite simple. You invest a dollar amount and the professional money management people who run the fund make all of the investment decisions for you. This is how to invest the simple and easy way.
Basically, you can invest in stocks, bonds and safe money market securities by investing money in mutual funds. That’s all the choices you need. You can pick and choose which stock funds, bond funds and money market funds to invest money in.
Or, if you don’t feel comfortable picking the different types of funds you can start investing with funds that invest in a combination of all three of the above investment categories (balanced funds). Now your only investment decision is how conservative or aggressive you want to be.
For years the investment of choice for most investors has been mutual funds. They are, in my opinion, still the best investment for most people.
There’s a big difference between saving and investing money. If you need a cash reserve and total safety keep some money in the bank. If you want to invest money and make it grow, go with mutual fund investing. For most of the people most of the time, mutual funds are the best investment.