However, massive redemptions by shareholders could force them to sell in an untimely manner. This is not an issue with most funds. It is most common in sector funds, markets that have gotten creamed such as emerging markets funds, and those with really lousy performance. If you read the prospectus and look at a fund's holdings over time, you can get a feel for the extent to which a manager might try to time the market and turnover. A huge benefit of owning funds is the diversification you get, spreading your money out over many stocks rather than just a few.
Funds are the best way to go for small investors.