| Stocks have several pros and cons associated | | | | work for you. While mutual funds are a great |
| with them. Stocks are a great option if you know | | | | investment option they do have a few |
| what companies you want to invest in. They are | | | | drawbacks. The first drawback is that they |
| also a great option if you are interested in day | | | | charge management fees and carrying fees. |
| trading. While stocks offer you flexibility and | | | | These fees cut into your profits and investment |
| control over the diversity of your investment | | | | capital. The second drawback is that the |
| portfolio they require a lot of work to keep your | | | | performance of the mutual funds depends |
| portfolio properly diversified. A lot of financial | | | | partially on the management company's ability to |
| experts recommend that your investment | | | | select good investments and the company's ability |
| portfolio contain investments in at least 20 | | | | to manage the fund's investment portfolio. |
| different companies and in at least 10 different | | | | Another drawback to mutual funds is that you |
| industries. Making this many stock selections can | | | | don't have any say in which investment products |
| be difficult to do. | | | | the mutual fund invests in. Because of this the |
| Mutual funds are another investment option that | | | | fund may invest in a company that you would |
| you have. A mutual fund is basically an investment | | | | prefer not to invest in, or they may select an |
| set that is controlled by a financial management | | | | investment product that you think is a bad |
| company. This management company selects the | | | | investment. Finally, mutual funds are susceptible to |
| stocks, bonds and other investments that are | | | | fraud. In recent years there has been several high |
| held by the mutual fund. Mutual Funds are a great | | | | profile fraud cases filed against mutual fund |
| way to easily diversify your investment portfolio. | | | | management companies. |
| The management company does all of the leg | | | | |