Thread: Why would you invest in mutual funds/individual stocks instead of ETFs if...?

If you just want to get a return around the market's return?

Makes no sense.

Are mutual funds a huge scam? We already know they barely beat the market, and they definitely don't after fees.

I think individual stock trading is also a scam pushed by brokers. Unless you're a phd math working in a hedge fund, I don't see how it's possible for you to consistently generate alpha.

Seems like it's all BS srs.

Originally Posted by BLOATMOGGER

Mutual fund managers and hedge fund managers have a lot of factors working against them which individual investors don't.

Sure. That doesn't mean retail investors are able to take advantage of these advantages they have over professional money managers. The vast majority of them lose big.

Mutual funds are a decent way to learn, that’s where I started, but fees eat into the gains you do make until you accumulate enough to move into lower fee brackets etc

Individual stocks can be good if you know what you know, leverage it, and hold long-term. But most people are better off just trying an index or whatever and forgetting about it

Originally Posted by SAD_COW_DISEASE

Active management isn't dead. I think they're still useful in certain areas (bond market is an obvious one). But if you're a retail investor you're better off (in my opinion) buying an index fund rather than trying to compare actively managed funds.

Yeh most people are almost surely better off just buying an index, but I think individual investors can do well buying stocks if they have specialized knowledge. I work in O&G and that's what I invest in, mainly because I almost have insider knowledge about stuff that companies are doing and I spend 50hrs+/week knees deep in the industry


Warren Buffett would say that the key is identifying your area of competence, valuing businesses within that area of competence, and then buying what sells for the lowest price in relation to value

Originally Posted by niospecv

I've had a mutual funds account for years and it sucks. I'm going to pull my money out and invest it into crypto. SRS

I am actually thinking of doing this srs. Brb put 1/5 the amount I put in mutual funds every 2 weeks on ETH last week and it has already outperformed my mutual funds that have been there for months.

srs.

just buy SPY for you'll regret it.

If youre really good or really lucky you might beat the s&p for a year or two. one bad year and it will set you back a decade. (if youre down 30%, you need to make approx 48% to get back to even etc)

buffet says when he passes his fortune is to be left for his wife in the S&P 500. enough said.

dont over think it.