What it doesn't do is put your money to work in the most efficient and profitable fashion. While money that sits in a savings account does indeed earn interest, those earnings are usually rubbed out by inflation. Of course, certain considerations must be given to the stock market's recent downturn. It may make one weary to invest in a market that seems to have turned for the worse. Yet investments made today, especially those made in the form of mutual funds, should be made while looking ahead to the future.
Mutual funds are good investments in terms of long term growth.
Their diversified nature cuts down on the risk of putting one's eggs all in one basket. In addition, stocks, bonds and mutual funds are cheaper to buy in to today than they were just two months ago. By historically solid, I am referring to the major automobile manufacturers, computer companies and telecommunications businesses that are on solid and proven ground. They are the leaders of their respective industries and are companies that continue to grow and expand gradually. So if you're a student and have a little spare change sitting around, give Wall Street a look.