Personal Finance Buzz

Mutual funds that return management fees to investors years they don't beat their relevant benchmark exist and will probably become more popular as the benefits of indexing become wider known.

Mutual funds are a popular choice for investors just starting out. But index funds may be worth a look.

Funds essentially represent the ability to invest in shares from multiple investments at once. This can add instant diversity to a portfolio, as well as spread the risk around so that if one investment tanks, there are other investments limiting loss.

Ever since ETFs or Exchange Traded Funds became popular, the debate about which kind of investment is better has continued to ensue. First of all, mutual funds need no introduction. These have been one of the most highly used investment mediums for any kind of investor because it offers broad diversification, professional management, and low investment minimums. Mutual funds are common in an investor’s portfolio ever since it made its debut in the 1920’s.

You don’t have to settle for expensive equity mutual funds recommended by your financial advisor. Ask questions, and look into cheaper index funds.