| If you are thinking of investing money in stocks you | | | | like to invest in, whereas you may not get this |
| need to consider whether mutual funds or actual | | | | degree of choice with a mutual fund. You can |
| individual stocks would be better for you. A lot can | | | | probably select a certain type of mutual fund to |
| depend on your level of knowledge and the amount | | | | invest in – such as those which only invest in |
| of time you have to spend on thinking about your | | | | ethical companies for example. But beyond this it is |
| investments. | | | | up to the manager of that fund to make the |
| A mutual fund is a fund which is managed by a | | | | decisions, and you just have to go with them. |
| specific person within a company. It allows people | | | | Certainly if you want 100% control then investing in |
| to invest in a wider variety of shares than they may | | | | individual stocks is the best route to go. You do |
| be able to otherwise. Thus it is usually quite good | | | | need to be prepared to research the market though, |
| for people with lesser amounts of money to invest | | | | in order to stand the best chance of making some |
| because they can spread it further and spread the | | | | money in both the short and the long term. You |
| risk at the same time. | | | | need to substitute the knowledge of the mutual fund |
| However some people don’t like the hands off | | | | manager for your own knowledge, if you will, so that |
| approach that mutual funds offer. For some this is | | | | you can decide where your money should go. |
| ideal and indeed it can be one of the reasons why | | | | As you can see there are significant differences |
| some people choose it. But for others it is not ideal | | | | between the two types of investment. This |
| because they do not have the same amount of | | | | isn’t to say that one is significantly better than |
| control over it they would have if they invested in | | | | the other though. It just depends on what type of |
| individual stocks themselves. | | | | investment is right for you. If you like to be in |
| If you opt for stocks rather than mutual funds you | | | | control stick with the individual stocks and make your |
| get to decide if and when you want to sell them. | | | | own decisions. If you want some help, mutual funds |
| You can also choose the specific stocks you would | | | | will be best. |