Re: Why Mutual Funds are better than Index Funds
I actually do not own any mutuial funds, and do have several holdings in index funds within a universal life policy (I had no choice but to pick several of these within the policy. My real investing strategy is to own a handful of closely monitored and well researched stocks, and they have done very well for me. And of course, this is much better than having money in mutual funds with all their inherent weaknesses.
But when comparing mutual funds to index funds, I still believe that the psychological factor of less downward fluctuation in a proven Value Invested mutual fund far outweighs the consequences of eventually being capped. Thus, a beginning investor will be better served by it. And if you do not agree, than we will have to agree to disagree.
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