Theme parks that have stocks on the NYSE or Mutual Funds?

What are the benefits of investing in mutual funds over stocks?

• mutual fund companies invest in stocks and take a hefty amount as loading and exit charges. If we invest in stocks the risk is ours we get knowledge about market and profit in case our analysis is correct. The loss is less even on the flip side since we gain knowledge. In mutual funds also the loss is there if the markets do not perform plus the loading charges. Still people prefer mutual funds over stocks at-least whom i have seen.

• Answer:

  Off the top of my head, some advantages of mutual funds include: 1. You can diversify over a large number of stocks even if you don't invest a large amount of money. 2. It's up to the manager to do the research on every company the fund is invested in, or potentially wants to invest in. Doing this kind of due diligence is time-consuming for an individual investor, even for 1 or 2 stocks. With a mutual fund, you just have to do the due diligence on the fund. 3. You don't have to worry about rebalancing your investments. If you invest in individual stocks and one does extremely well, for example, you should consider doing some rebalancing so that an inordinately high percent of your investment is not in one place. Mutual funds would manage this kind of rebalancing internally so you don't have to worry about it.