The question has once come across every investors mind: Mutual funds or stocks? This question is mostly asked by the beginner who wants to start investing, but doesn't know where to put his or her money. What is the answer to the question? There is no correct answer, but it can be argued for either side. Determining whether to put your money in mutual funds or stocks depends on you. How you will determine which is best is what I'll show you. Stocks are shares of ownership in a company. You can buy shares through a brokerage at the price per share. Historically, the stock market has averaged annual returns per year of 11 percent. Of all the different types of investments, stocks will give you the most for your money. However, stocks can also be the most volatile. Risk and return go hand-in-hand. In the long run history has shown that financial markets recover, so stocks should be considered investments for the long run.
A mutual fund is a huge collected amount of money from a large