3. Best brokers for mutual funds

Are Mutual Funds a Good Investment?

Mutual funds are a popular investment because they provide diversification. However, many investors prefer passive investing to active investing and therefore steer clear of mutual funds. This is because actively-managed funds generally charge high fees, and mutual funds often have expense ratios anywhere from 0.25% to 1.5% per year.

In contrast, investing in ETFs or index funds are passive investments that still provide investors with diversification.

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