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Should I buy individual stocks or mutual funds?

stock or mutual funds

stock or mutual funds

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.


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