Is there still a reason why someone would want to invest in mutual funds rather than ETFs?

Mutual funds are safer. ETFs are high risk. No one buys and sells the stocks in the ETF. When a stock goes bad, the ETF will keep it and go down with the ship.

Since they trade like stocks, you're going to get eaten up in short term gains if not held for more than a year.

If you find the right company, mutual funds are relatively low in cost, especially no load funds.

Absolute returns are actually not possibly correct, making 30% final year grew to become right into a doddle for many yet somewhat seem at the way it perfromed against its classification of investments. If it grew to become into greater quartile for the a million, 3, 5 and 10 years then it is going to likely be a stable guess. word in spite of the shown fact that that ETF's are completely on the whim of the industry and, counting later on-physique for investment now's an incredible or unfavourable time to pass into the industry. It will become a greater useful thought the longer you elect for to hold the money there. in case you're finding at controlled money then heritage is lower back not greater useful relatively as some investors use a technique that has the two underperformed or overperformed due in particular to the industry profile over modern quarters. attempting to hit upon the govt who's desperate up the appropriate to income longterm is the perenial seek we are all on. My appropriate suggestion is to no longer set your expectancies too severe for a brilliant return, seem for competative administration costs and expenditures yet do no longer save interior the basement on that standards and carry for the long term. save your eye on the overall performance yet a minimum of 5 years is had to get by using down years. If after 5 years your favorite investment remains underperforming then think of roughly creating a swap. precis. choose for in case you elect for the money controlled (greater expenditures yet theoretically greater useful overall performance) or in simple terms to bypass with the pass. understand that money desires to be locked away and forgotten approximately for an prolonged era. elect on relative previous perfomance and finished returns AFTER expenditures. there is not any way around it, it takes lots of learn. As an aside, in case you will get a stable one counseled to you an INDEPENDANT (relatively independant) financial consultant would be a smart best buddy. I could desire to assert that throughout my humble opinion maximum of them are in simple terms as undesirable as realtors and entirely low high quality yet a stable one stands proud a mile. seem to pay them for their time no longer via commision on what you purchase could be my advice in spite of the shown fact that it relies upon on how plenty you are able to make investments as to no remember if that could be a competitively priced decision. stable good fortune.

The biggest drawback to ETFs, is transaction costs, every time you buy or sell. So they are ok, for a lump sum investment. But they are a terrible choice for dollar-cost-averaging.

It's really just for people who are to uninformed and would rather have the "security" of a "professional manager". Mostly for people who don't want to know anything about investing.

Nope, you pretty much said it all.