The Good and the Bad of Investing in Mutual Funds
Mutual funds are arguably the most popular investment vehicle for the majority of investors right now. However, before investing in a mutual funds, you must understand first the good and the bad of investing in them.
What are mutual funds?
There are many different kinds of mutual funds, and they cover many different industries and different asset classes available. It offers a lot of advantages such as advanced portfolio management and risk reduction. However, there could also be high expense ratios and sales charges.
Advanced Management
Buying a mutual fund requires you to pay a management fee. This fee is part of your expense ratio, which is used to hire a professional portfolio manager that will buy and sell stocks bonds, and other assets. The expense is relatively a small price to ...