There’s always going to be supporters and detractors of including mutual funds in your investment portfolio. The key is not to blindly follow advice, but like ANY investment opportunity, you have to do your own homework before you invest.
3. What started as a
obscure financial
instrument has become
extremely popular over
the last 20 years and
given birth to the whole
financial planning
industry.
4. We see them sold in
just about every bank,
insurance company,
and investment
agency. They’re
packaged as part of
savings plans,
insurance plans and
come in so many
different “flavors.”
5. But although they are
more accessible to the
average person than
individual stocks, they
still require research and
knowledge.
6. That’s where most
people who’ve lost
money in mutual
funds fail. They’ve
been led to believe
that mutual funds are
secure, low-risk, and
returns are almost
guaranteed.
7. The financial downturn
in 2008 showed, like
any other investment,
how uncertain they can
be. Instead of finding
out everything they can
about the mutual fund
they planned to invest
in, they left it to
someone else.
8. As with any investment,
it’s important to
understand and weigh
both the pros and cons.
9. There’s always going to be supporters and
detractors of including mutual funds in your
investment portfolio. The key is not to blindly follow
advice, but like ANY investment opportunity, you
have to do your own homework before you invest.
10. It doesn’t matter
which investment
you decide to add to
your portfolio, the
best protection for
your investments
is education.
11. The more you know about an investment,
the more thorough your due diligence, the
higher your probability of success.