Chip-Stapleton-14-Who should invest in mutual funds
Chip Stapleton explains that mutual funds suit nearly every type of investor — offering new investors affordable access to professional management and diversification, while giving experienced investors the flexibility to balance passive and active strategies within their portfolios.
Video Transcript
Mutual funds, they're really for just about every type of investor. Investor. A very new investor that doesn't have a lot of money, mutual funds can be great. They allow you access to professional management and give you really instant diversification to a wide swath of the market.
So that's fantastic for new investors that don't have a lot of money. It can also be great for more sophisticated investors that do have more money, where you can take advantage of maybe some passive strategies that the mutual funds have access to, like an index fund, where you could put a portion of your portfolio in one of these passive mutual funds, can allow you to then focus on other parts of your portfolio, where maybe you want to do a more active trading.
