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