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Mutual funds are all about diversification. Any individual stock carries a risk in that losses (and gains) can fluctuate significantly. A well conceived mutual fund mitigates extreme fluctuations in value as the value of some stock losses will be offset by gains in others. Typically, mutual funds will had a level of risk assigned to them based on the composition of stocks that comprise the fund. Many investors prefer mutual funds as they are deemed to reduce risk.

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Q: Why do many people buy mutual funds instead of buying the stocks of individual companies?
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What are some mutual fund companies that offer low expense ratios on mutual fund investments?

There are a few mutual fund companies that offer low expense ratios on mutual fund investments. One of those companies is Scottrade, the company is people friendly and willing to work with an individual to assist them in making sound financial decisions.


Mutual fund companies?

There are numerous Mutual Fund companies throughout the world. The top MF companies in India are:HDFC Mutual FundReliance Mutual FundICICI Prudential Mutual Fundetc


Which is more risky investment-Equities or mutual fund?

The stock answer is, buying individual equities is more risky than buying a mutual fund because a mutual fund contains many equities, hence is "less sensitive to the vagaries of the market." IOW, if there are three hundred different companies represented in one fund, the odds of them all going down is really low. The real answer is, it depends on whether you or the manager of the fund in question is better at picking stocks, and how diversified your portfolio is.


Mutual funds in companies?

There are numerous Mutual Fund Companies in India. Some of the prominent ones are:ICICI Prudential Mutual FundsHDFC Mutual FundsSBI Mutual FundsPrincipal Mutual FundsDSP Black Rock Mutual FundsReligare Asset ManagementReliance Mutual Fundetc


Where online can I compare mutual funds?

There are hundreds of mutual fund companies out there. Some of the best companies are Barons, Fidelity, and Mutual Funds of America to name a few.

Related questions

As an individual investor do we need to submit separate PAN Card and KYC forms to all Mutual fund companies if you have more than 10 companies?

YES - If you are buying them through individual agents and MF houses using separate forms. NO - If you are buying them using a DEMAT account. In this case, it is enough if you submit these documents once to your DEMAT provider.


Do mutual fund companies buy corporate equities?

Mutual fund companies are the largest institutional purchasers of corporate equities, buying approximately one-quarter of all corporate bonds that were issued


Companies that have Disability insurance?

There are plenty of companies that provide disability insurance. Some companies have individual disability insurance plans, some have group disability insurance and some have both. Individual insurance companies: MetLife, Mutual of Omaha, Guardian/ Berkshire, Principal, Ameritas, Assurity, Fidelity Security, Illinois Mutual, and more. Some of the group disability insurance companies: SunLife, Reliance Standard, Kansas City Life, MetLife, Mutual of Omaha, Illinois Mutual, Washington National, etc.


What are some mutual fund companies that offer low expense ratios on mutual fund investments?

There are a few mutual fund companies that offer low expense ratios on mutual fund investments. One of those companies is Scottrade, the company is people friendly and willing to work with an individual to assist them in making sound financial decisions.


What are some companies that offer buying renter's insurance policies?

There are many companies that offer buying renter's insurance policies. These include Wells Fargo, Esurance, Geico, MetLife, Liberty Mutual and Adrian Flux.


Mutual fund companies?

There are numerous Mutual Fund companies throughout the world. The top MF companies in India are:HDFC Mutual FundReliance Mutual FundICICI Prudential Mutual Fundetc


Which is more risky investment-Equities or mutual fund?

The stock answer is, buying individual equities is more risky than buying a mutual fund because a mutual fund contains many equities, hence is "less sensitive to the vagaries of the market." IOW, if there are three hundred different companies represented in one fund, the odds of them all going down is really low. The real answer is, it depends on whether you or the manager of the fund in question is better at picking stocks, and how diversified your portfolio is.


Mutual funds in companies?

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How can one buy auto insurance online?

An individual can buy auto insurance online by going to the individual websites of many well known insurance companies. Three reliable companies for online insurance are Nationwide, Progressive and Liberty Mutual.


Where online can I compare mutual funds?

There are hundreds of mutual fund companies out there. Some of the best companies are Barons, Fidelity, and Mutual Funds of America to name a few.


What are mutual fund shares?

Mutual fund shares are stocks of mutual funds, fractions of mutual funds just as companies have shares.


What is a Mutual Insurance?

A mutual insurance company is based on the way that the company is formed. Mutual companies are technically owned by the policyholders rather than stockholders. Most of the major mutual insurance companies have changed to being stock based companies. Metropolitan and Prudential are the largest two life insurance companies and both were mutual companies that changed to stock companies in the past few years. The policyholders that were the former owners of the company received shares of stock in exchange for their ownership positions.