Question : What is better to invest in, a mutual fund of company stock?
what is the best investment for the long haul of making a person more money a mutual fund or company stock? Does anyone now of hot stock pic in either catagory?
- asked by Copper J
All Answers:
Answer #1
A better way of thinking of it is that companystocks are riskier but givehigher rewards thanmutual funds.Over the long term (i.e. 20 years),the stock market will do better thanmutual funds. If you have a nicely diversified collection ofstocks, in thelong run, you'll do better withstocks.If you're going to reap your rewards sooner(i.e. 5 years), you shouldprobably pick mutualfunds.
- answered by Elana
Answer #2
Mutual funds offer diversification. However, ifyou want to buy stock for the long haul, buy thestock of a major bank and hold it. Like Bank ofAmerica or Citigroup.
- answered by cklwong
Answer #3
The right stocks will definitely outperform mutualfunds in the long term.The problem is thedefinition of the "right" stock.Be wary of peoplewho tell you about the next hot stock.Mutual fundsare a collection of many different stocks so thatthe diverisification of risk - spreading your riskso that you don't place all your eggs in onebasket in case they break - is already providedfor you by the person in charge of the mutual fund(the fund manager).So when you look at mutualfunds it is important to know who is in charge ofthe mutual fund.If you do decide to go withstocks, then I would suggest that you stick withcompanies that you know. Have you heard ofmicrosoft, apple, bayer, johnson and johnson,pepsi - to name a few. Companies that cangenerate a large number of sales and be profitableare about as "safe" of an investment as you canmake.Look at the companies that are earningprofits above analysts expectations, that have astrong position in the global markets, and thathave strong brand names.
- answered by On the rocks
Answer #4
A mutual fund buys lots of stocks, so buying amutual fund reduces your risk.A single company isriskier and harder to know when to buy or when tosell (which is why many buy mutual funds). I havea hot stock tip for you - don't buy any mutualfunds until they're done their annualdistributions. If you do, then you're going tobuy a tax liability that you didn't earn (mutualfunds need to shed their capital gains every year- used to be non-taxable but Reagan changed thatin 86). If you buy now and there is a 20%distribution, you'll pay tax on that 20% gain.GMgot nailed 5% today - some would say that's a buyopportunity, others say run like Kekorian did. Google shot to over $500 today - some say buy it'son a run, others say don't buy because it's toohigh.My other hot stock tip - don't buy what youdon't know. Personally, I like MSTR(Microstrategy), but I know the founder and hethought of bluetooth technology 7 years ago - heis a visionary).
- answered by girlwhoknowsitstrue
Answer #5
I would think company stock. I had bought someshares from Ford Motor Company for only $7.00 andmade over $100.00 in one day. You just need tofigure out with stock would be the best to investin. You will also need to open a stock marketaccount at any bank. Hope this helpsGood Luck
- answered by Joseph D
Answer #6
You're probably better off in mutual funds if youare asking people on here for hot stockpicks.Here's a page for finding a good good mutualfund to investin:
http://www.best-stock-trading-systems.com/mutual_fund_ratings.htmlHere are some pages regardingstockpicks:
http://www.best-stock-trading-systems.com/us_stock_picks.html
http://www.best-stock-trading-systems.com/best_penny_stocks.html
- answered by cmeduck
Answer #7
rather than a mutual fund....you might want to buystock in the parent company....forinstance....Legg Mason's stock [LM] hasoutperformed all of its funds....much the samewith Franklin Resources [BEN]and TRPrice [TROW]andAVZ holdings---AIM funds, Invesco funds, and"powershares" ETFsfor a spec play, you might wantto researchJNC, JNS, EV,AB, MMC ....some for M&Apossibilities, some for performancegood luck
- answered by Gemelli2
Answer #8
Go check out the articles at
http://www.hammocksurvivalguide.com/Specifically,the categories of 'Stocks Mutual Funds' and'Investing'.
- answered by David S
Answer #9
Hi, i suggest a great site with plenty of Issuesrelated to your Investing and everything aroundit. it also provide clear and accurate answer tomany common questions.I am sure that you can getyour answers in thiswebsite.
http://investing.sitesled.com/Good Luckand Best Wishes!
- answered by stock.expert
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