However, mutual funds do have their disadvantages. 90 percent of mutual funds, in the last decade, have underperformed the market. That's what anxious investors who want to gain their wealth a little quicker say. They think of investing their money in stocks as an adventure and can live with price fluctuations, while they scowl at leaving their money in a snail speed mutual fund. The beginner often sees what the expert overlooks.
Regular people do it all the time.
A blind folded monkey can throw darts at a stock listing and compete very well with the money mananger. While the fund manager is looking at all his numbers the common investor is using common sense. Both mutual funds and stocks can be for long term investors. But over the longer period of time, the stocks will prevail over the underachieving mutual funds. Those who cling too tightly to the familiar deny themselves many opportunities.