Is Investing In A Mutual Fund For You?

Believe it or not, my first stock investment ever was purchasing a mutual fund. I was a senior in college then, anxious to participate in what appeared to be a roaring bull market in the US.  I would study in the library at night and would hear a friend every day boast at how much money he was making.

Investing in Delaware Trust, the best mutual fund to invest in the US at that time based on my research, appeared to be a no-brainer then. Basically I was told I would be a part owner of a fund of stocks managed by a professional money manager. Furthermore, for someone with limited funds I would get a diversified portfolio. I will not be at the mercy of losing a good part of my money from the bad performance of one stock. With several stocks in the portfolio, that bad performance would be softened or even offset by the other stocks going up.  And I was also told that because the fund would be purchasing stocks in “bulk” that I will be saving in commissions. Continue reading “Is Investing In A Mutual Fund For You?”