Online Saving Accounts provide some reasonable returns (~ 5 % APY) but is there anything with better returns that is
safer than individual stocks or mutual funds?
So they're
safer than individual stocks, because they're diversified.
Not exact matches
Decades of falling interest rates has taught
individual investors that bonds are
safer than stocks.
That's not to say that a mutual fund won't decrease in value if there is a market correction in either
stocks or bonds, but it is
safer than owning the
individual financial instruments.
Investing in diversified funds is
safER than buying
individual company
stocks.
Choosing from among the three Canadian - market dividend ETFs traded on the Toronto
Stock Exchange is faster, easier and
safer than picking
individual dividend
stocks.
While
stocks are riskier
than bonds or CDs because there's no guarantee
individual companies will succeed, the
stock market outperforms
safer options over the long - term.
To continue on the same train of thought, major market indexes are always a
safer way to invest
than individual stocks.
Thanks... nice post.Mutual funds provide a
safer solution
than individual stocks.
Attracted by higher yields
than on
safer bonds, and with lower valuations
than on
stocks currently, portfolio managers and
individuals alike have poured money into junk bonds this year.
Because of their diversity, more mutual funds are considered a
safer bet
than individual stocks, as they are spread out in such a way that poor performance in one area of the market will not necessarily make that much of an impact on the overall fund.
However, I second the comments of others that if you're looking to invest a small amount in the
stock market, a low cost mutual fund or ETF, specifically an index fund, is a
safer and potentially cheaper option
than purchasing
individual stocks.
Individual bonds, although less risky
than stocks, are not as
safe as bank savings accounts.
Knowing the basics of investing — that diversified funds provide a
safer return
than individual stocks — is also helpful.