Tuesday, August 24, 2010

Mutual Fund Pros and Cons

Here are some of the pros and cons of investing in mutual funds.
Pros:
  • Higher potential returns (compared to bank deposits)
  • Gains are tax-free
  • Smaller investment amount needed (compared to investing directly in stocks)
  • Minimal time and effort required
Cons:
  • Returns are not guaranteed.
  • Investments are not insured, you may lose part of your investment.
  • Annual fees and sales loads
  • Not suitable for short-term investments

No comments:

Post a Comment

There was an error in this gadget