The Individual Investor's Guide to The Top Mutual Funds 2012
Mutual fund assets totaled more than $11.6 trillion on November 30, 2011, according to the Investment Company Institute. This is a slight decrease from December 2010, when assets totaled $11.8 trillion.
The total amount of assets shows the important role mutual funds continue to play in portfolios. Mutual fund assets exceeded exchange-traded fund (ETF) assets last year by a margin of 10 to one. A key reason for the continued popularity of mutual funds is that they give individual investors low-cost access to professional money managers. Mutual funds provide instant exposure to a wide variety of assets and investment strategies, including growth, value and income.
Mutual funds also remain a top choice for investors who want to mimic the performance of an index, a strategy known as passive investing. Though most ETFs follow passive strategies, Vanguard’s Total Stock Index (VTSMX) continues to be the largest index fund, exceeding even the popular SPDR S&P 500 ETF (SPY) in size.
...To continue reading this article you must be registered with AAII.
to read this article and receive access to future AAII.com articles.
Already registered with AAII? Login to read the rest of this article.