New York - The choice between individual stocks and mutual funds should be based on how much skill and desire you have when it comes to tracking individual stocks, your investment time frame and your risk tolerance levels.
Although there are more mutual funds than stocks, investing in individual stocks requires additional diligence and risk tolerance level because of the concentration of your investment in one security whereas a mutual fund provides for diversification. As your investment time frame increases - stocks are our preferred investment class.
If you plan to invest long-term, perhaps using a systematic basis and like the idea of following companies, individual stocks may be more appropriate for you. We believe that investors who hold individual stock portfolios can achieve higher after-tax returns.
Founded in 1998, The Independent Adviser Corporation has assisted thousands of individuals, families, and businesses. We are 100% independent and objective and offer free private consultations to our clients. Our company publishes free investment research and educational materials, and when specific financial or legal advice is needed, we connect clients with a network of FEE-ONLY professionals. For more information, become a member or to schedule a free consultation, please visit our website at TheAdviser.com or 1800ADVISER.COM.