Individual Stocks

Individual stocks have some characteristics that investors find attractive:

  • No Fees
  • Greater Upside Potential
  • Hands-on Investing

Once you’ve paid your brokerage fee, there are no ongoing fees with owning individual stocks like there are with mutual funds. These fees, which may seem small (or large in some cases), drain mutual fund returns. When we look at compounding, you’ll see that even a small percentage change over a long period can make a big difference in your return.

Individual stocks have a greater upside potential than most mutual funds. The diversification that is supposed to keep mutual funds from falling too far also holds them down. You trade some risk for a greater potential reward.

Many investors like to know where their money is going and that can be difficult with a mutual fund that invests in a 100 companies. Investing in individual stocks gives you the opportunity to get to know the company and feel comfortable about where your money is going.


 

 

http://stocks.about.com/od/investing101/a/Youownstocks.htm

Important Notes: All investments involve the risk of potential investment losses as well as the potential for investment gains. Prior performance is no guarantee of future results and there can be no assurance, and clients should not assume, that future performance will be comparable to past