Why Would Someone Choose a Mutual Fund Over a Stock?

Mutual funds are often safer and less complicated

Investing can be complicated and overwhelming. There are many different investment options including stocks, bonds, real estate and money market accounts. If you invest on your own, it's up to you to pick your investments, monitor their performance, and modify your investment strategy over time.

Another option for investors is to partner with a mutual fund. You can still build wealth through investing, but a mutual fund helps make investment decisions for you. If you're curious why some investors choose to invest with a mutual fund instead of picking their own stocks, read on to learn some common advantages of mutual funds.

Advantages of Mutual Funds

Diversification

Convenience

Costs

Are Mutual Funds Safe?

Like all other securities, mutual funds are investments that are subject to losses. However, the goal of a mutual fund is to reduce investment risk, so mutual funds can often be less risky than other types of investments due to its diversification.