Why Would You Even Consider Mutual Funds?

· In addition, corporate "road shows" stoptopping that!
off at various professional management offices to· Terrific Variety: Whatever you want,
bring them up to date, but don't expect them tothe fund industry offers. Want to invest in
come knocking on your door. Finally, influential WallJapanese companies? Health care? New Jersey
Street professionals share their opinions first withmunicipal bonds? Indonesian utilities? There's a
large, commission-generating customers--likefund somewhere doing just that.
mutual fund managers.· Ease and Convenience: Usually, you can
· Instant Diversification: To achieve evencomplete your transaction with one phone call and
bare-bones diversification on your own at aa bit of paperwork. And if you stay within a
reasonable cost, you would need several hundredparticular fund family, you can switch funds with
thousand dollars to invest.no--or at the very least, minimal--expense, over
· Low Costs: Funds charge managementthe phone.
expense fees that approximate 50 to 75 basis· These are some of the more significant
points (.50 to .75 percent), and go as high as 75reasons why mutual funds have reached
to 150 basis points for some equity funds. If youunparalleled popularity in this country (other than
stick to no-load funds that keep expenses low,those primetime TV ads). You just have to use
however, you'll find that investing in mutual fundsyour head in making your selections. Start by
is a great deal cheaper than investing in stocks onrequesting annual and quarterly reports and
your own and paying commissions and transactionprospectuses from funds that interest you. And
costs. Some index mutual funds have expensesactually read them before you buy!
as low as 12 basis points (.12 percent). Try