Another tool in your investing arsenal should be mutual funds.
Mutual funds are pools of companies professionally managed within a diversified portfolio.
Depending upon the fund objective, a mutual fund can be comprised of stocks, bonds, tax free bonds or other securities. It is generally acknowledged that investing in mutual funds involves less risk however they may offer lower returns than let's say certain securities. Whether you focus on funds or stock depends on a few factors such as size of your portfolio, risk tolerance tax position, long and short term goals, lifestyle and personality. Whether you're looking to invest, cut taxes, save money, or retire worry-free, Money helps you reach your financial goals. Each monthly issue of Money offers smart, no-nonsense tips and strategies to make the most of your money.