What do I think about this claim? I personally think if you do not know how to analysis companies and do not how to diversify your own portfolio with different stocks then you should buy into mutual funds. Mutual funds are a super simple way for anyone to automatically diversify their portfolio. So, if you do not know what you are doing when it comes to investing and picking and choosing stocks/companies you want to purchase then buy a mutual fund. If you know how to analysis stocks/companies and know how to diversify with stocks on your own, then do not buy mutual funds. It is really that simple.
Mutual funds are great investment vehicles for new, inexperienced or even passive investors. It allows you to be 100% sure your money is diversified, which will help protect you during market crashes. They also help stabilize your investments.
What do I do? I started out investing in mutual funds, because when I started investing I didn't really know what I was doing but knew I needed to start investing. Over time I have slowly moved away from mutual funds and have started moving into building my own portfolio with individual stocks. I also have a couple of ETFs which track the S&P 500 and a bond fund I invest in to help build a little bit of stability into my portfolio.
What are my future plans? My plans for the future are to completely move away from mutual funds and strictly invest in individual stocks, REITs, and bonds.
Tell me what you currently do for your investment portfolio or what your future plans are in the comments below!