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Readers Respond: What Do You Think Are the Disadvantages of Mutual Funds?

Responses: 6


As with any investment structure, mutual funds have their advantages and disadvantages. What do you think are the most disadvantageous features of mutual funds?

investing in mutual funds

Mutual Funds are an investment vehicle: neither good nor evil, (although some of their fees are evil :). What is good or bad is which choice you make and why. Many of the thousands of different funds perform poorly at any given time. Others target sectors which the market may destroy, while others are all hype. The beauty of Mutual Funds is you can buy stocks without having to own them. The disadvantage is they pick them, not you. Depending on your investment strategy, the average Joe, (or Jane,) can be their own investment manager. And depending how wise you are, you can do well, or poorly. I don’t have the time, or timing, to do it all myself. So, for a reasonable management fee, I’ll pay a mutual fund manager to do it for me.
—Guest Grampa

This helps

Thanks for the article. I don't know enough about investing to contribute meaningfully to the question, but I will now be cautious of those articles discussing the negatives of mutual funds. Even though I'm sure there are some!
—Guest Michael B.

Tell the truth

Let people know the true disadvantages in mutual funds instead of glossing of topics in "10 reasons to buy." Your only true helping quality was about hidden fees. Give your self some credibility with telling the truth or have someone write the article that doesn't like mutual funds. I just started to invest and I can tell that you don't know anything!
—Guest Dan


No matter what, I'm glad I signed up for your newsletters. I'm getting, soooo educated on finance. thanks
—Guest pinkpantherdiamond


Good article; all is on target. If you are investing and don't know these facts as pointed out here, then maybe you should let someone else do your investing for you.
—Guest BOB


I think mutual funds are difficult to understand. So, I guess, that is the biggest disadvantage in my mind.
—Guest GuestConfused
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