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26th December 2015, 11:42 AM
Super Moderator
 
Join Date: May 2012
Re: Disadvantages of Mutual Funds

Mutual funds are a type of investment where investors pool their resources together to invest in diversified assets.

Disadvantages

High cost association.

In some cases the stock index may outperform the mutual fund.

If fund is riskier and more aggressive, the management fee will tend to be higher.

It is impossible to find a mutual fund with a guaranteed return.

Advantages:


Mutual funds is allow anyone to hold a diversified portfolio.

Assets are liquid.

Mutual funds do not require a great deal of time or knowledge from the investor.

Convenient because Mutual funds are easy to compare.


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