Business
Mutual funds are often preferred because they offer instant diversification and are managed by professionals, making them suitable for passive investors.
If you enjoy researching companies, have a high-risk tolerance, and seek potentially higher returns, investing in individual stocks might be more appealing.
Stocks generally carry higher risk due to a lack of diversification, whereas mutual funds spread risk across assets.
Stocks require more time for research and monitoring, whereas mutual funds are more hands-off.
Compare fees and expenses associated with both options, as costs can impact overall returns.
Many investors choose a combination of both mutual funds and individual stocks to balance risk and potential returns within their investment portfolios.