Starting investing: Mutual funds or Stocks

One of the most common reason why people choose mutual funds over stocks is that mutual funds offer diversification, convenience, and lower costs. Stock portfolio diversification means buying a number of different stocks of companies operating in different industries. According to experts, the benefits of stock portfolio diversification are fully realized when a portfolio has 20 stocks from 20 different companies operating in different industries.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s