Stocks vs Mutual Funds: Which Is Right for You?
By Allen Krewzz
%22%20%2F%3E%3Cpolygon%20points%3D%220%2C600%20800%2C0%20800%2C600%22%20fill%3D%22%231f9d55%22%20opacity%3D%220.08%22%20%2F%3E%3Ctext%20x%3D%2260%22%20y%3D%22100%22%20font-family%3D%22Helvetica%2C%20Arial%2C%20sans-serif%22%20font-size%3D%2220%22%20font-weight%3D%22700%22%20letter-spacing%3D%222%22%20fill%3D%22%231f9d55%22%3EPERSONAL%20FINANCE%3C%2Ftext%3E%3Cg%20transform%3D%22translate(470%2C220)%20scale(7.916666666666667)%22%20stroke%3D%22%231f9d55%22%20stroke-width%3D%221.6%22%20fill%3D%22none%22%20stroke-linecap%3D%22round%22%20stroke-linejoin%3D%22round%22%3E%3Ccircle%20cx%3D%2212%22%20cy%3D%2212%22%20r%3D%229%22%20%2F%3E%3Cpath%20d%3D%22M12%2C12%20L12%2C3%20A9%2C9%200%200%2C1%2020%2C15%20Z%22%20%2F%3E%3C%2Fg%3E%3Cg%20transform%3D%22translate(100%2C400)%20scale(4.166666666666667)%22%20stroke%3D%22%230f3d24%22%20stroke-width%3D%221.6%22%20fill%3D%22none%22%20stroke-linecap%3D%22round%22%20stroke-linejoin%3D%22round%22%3E%3Cpolyline%20points%3D%224%2C17%209%2C11%2013%2C14%2020%2C6%22%20%2F%3E%3Cpolyline%20points%3D%2214%2C6%2020%2C6%2020%2C12%22%20%2F%3E%3C%2Fg%3E%3Cg%20transform%3D%22translate(220%2C400)%20scale(4.166666666666667)%22%20stroke%3D%22%230f3d24%22%20stroke-width%3D%221.6%22%20fill%3D%22none%22%20stroke-linecap%3D%22round%22%20stroke-linejoin%3D%22round%22%3E%3Cline%20x1%3D%224%22%20y1%3D%2220%22%20x2%3D%224%22%20y2%3D%224%22%20%2F%3E%3Cline%20x1%3D%224%22%20y1%3D%2220%22%20x2%3D%2220%22%20y2%3D%2220%22%20%2F%3E%3Cpolyline%20points%3D%226%2C14%2011%2C9%2014%2C12%2019%2C6%22%20%2F%3E%3Cpolyline%20points%3D%2213%2C6%2019%2C6%2019%2C11%22%20%2F%3E%3C%2Fg%3E%3C%2Fsvg%3E)
What Are Stocks?
The appeal — and the challenge
What Are Mutual Funds?
The appeal — and the challenge
Active vs passive funds
A Side-by-Side Look
A Simple Example
You do not have to choose only one. A common approach is a diversified fund core for stability, plus a small slice in individual stocks you have researched.
%22%20%2F%3E%3Ccircle%20cx%3D%22400%22%20cy%3D%22270%22%20r%3D%22150%22%20fill%3D%22%23d9f3e3%22%20stroke%3D%22%231f9d55%22%20stroke-width%3D%223%22%20opacity%3D%220.9%22%20%2F%3E%3Cg%20transform%3D%22translate(300%2C170)%20scale(8.333333333333334)%22%20stroke%3D%22%231f9d55%22%20stroke-width%3D%221.6%22%20fill%3D%22none%22%20stroke-linecap%3D%22round%22%20stroke-linejoin%3D%22round%22%3E%3Cellipse%20cx%3D%2212%22%20cy%3D%2213%22%20rx%3D%228%22%20ry%3D%226%22%20%2F%3E%3Ccircle%20cx%3D%2218%22%20cy%3D%2210.5%22%20r%3D%220.8%22%20%2F%3E%3Cline%20x1%3D%229%22%20y1%3D%227.5%22%20x2%3D%2212%22%20y2%3D%227.5%22%20%2F%3E%3Cline%20x1%3D%226%22%20y1%3D%2217%22%20x2%3D%226%22%20y2%3D%2220%22%20%2F%3E%3Cline%20x1%3D%2216%22%20y1%3D%2217%22%20x2%3D%2216%22%20y2%3D%2220%22%20%2F%3E%3Cpath%20d%3D%22M20%2C12%20L23%2C11%20L23%2C15%20Z%22%20%2F%3E%3C%2Fg%3E%3Ctext%20x%3D%22310%22%20y%3D%22480%22%20font-family%3D%22Helvetica%2C%20Arial%2C%20sans-serif%22%20font-size%3D%2220%22%20font-weight%3D%22700%22%20letter-spacing%3D%222%22%20fill%3D%22%231f9d55%22%3EPERSONALFINANCE%3C%2Ftext%3E%3Cg%20transform%3D%22translate(60%2C60)%20scale(2.9166666666666665)%22%20stroke%3D%22%230f3d24%22%20stroke-width%3D%221.6%22%20fill%3D%22none%22%20stroke-linecap%3D%22round%22%20stroke-linejoin%3D%22round%22%3E%3Cellipse%20cx%3D%2212%22%20cy%3D%227%22%20rx%3D%227%22%20ry%3D%222.5%22%20%2F%3E%3Cellipse%20cx%3D%2212%22%20cy%3D%2212%22%20rx%3D%227%22%20ry%3D%222.5%22%20%2F%3E%3Cellipse%20cx%3D%2212%22%20cy%3D%2217%22%20rx%3D%227%22%20ry%3D%222.5%22%20%2F%3E%3Cline%20x1%3D%225%22%20y1%3D%227%22%20x2%3D%225%22%20y2%3D%2217%22%20%2F%3E%3Cline%20x1%3D%2219%22%20y1%3D%227%22%20x2%3D%2219%22%20y2%3D%2217%22%20%2F%3E%3C%2Fg%3E%3Cg%20transform%3D%22translate(680%2C60)%20scale(2.9166666666666665)%22%20stroke%3D%22%230f3d24%22%20stroke-width%3D%221.6%22%20fill%3D%22none%22%20stroke-linecap%3D%22round%22%20stroke-linejoin%3D%22round%22%3E%3Cline%20x1%3D%224%22%20y1%3D%2220%22%20x2%3D%224%22%20y2%3D%224%22%20%2F%3E%3Cline%20x1%3D%224%22%20y1%3D%2220%22%20x2%3D%2220%22%20y2%3D%2220%22%20%2F%3E%3Cpolyline%20points%3D%226%2C14%2011%2C9%2014%2C12%2019%2C6%22%20%2F%3E%3Cpolyline%20points%3D%2213%2C6%2019%2C6%2019%2C11%22%20%2F%3E%3C%2Fg%3E%3C%2Fsvg%3E)