Monday, July 22, 2013

Mutual Funds or buy Stocks directly? Try Financial Education!

It’s not an argument which is best, after all, these 2 instruments will help us increase our wealth. Where does the difference come? Pretty simple, if you are the type of person who have all the time in the world to monitor the stocks movement, that’s from 9am to 3pm, Monday to Friday, have all the experience in the stock market, has the right information which company is good to buy or not, have all the needed skills, then by all means, go right ahead and invest directly in the stock market.

Now you ask yourself, should I invest in the Mutual Fund? If you are the type of person who is busy doing something else like work, has no experience in the stock market and do not have the right information on which company to buy or not, then go with the mutual fund. In the Mutual Fund, there is an expert who handles your money, this expert knows very well what to do with the money, has the right skills and is dedicated to let the money grow.

Simply put it this way, these 2 instruments will help you achieve your financial goal. Think of it as an Airplane. Investing in the stock market directly makes you the pilot of the airplane, you must know how to fly it, you must lift off and safely land to reach your goal, you’re driving it by yourself. Now the Mutual Fund makes you the passenger in the Airplane, you just sit tight and relax until you reach your destination while the pilot flies the plane for you. Still both of you reaches the same destination.

So which is best? Both of them, it really depends on your investing style but the most important thing before investing is being financially educated. I have friends who just invest without knowing how it works, the result, money was not growing, worse, they lost their money.

There are some basic questions that investors should know like,  do you know what to do when the market soars high? What about when the market crashes and charts go red? When is a good time to buy or sell? How long should I keep my investments? These question will arise for sure and it is always good to prepare yourself by looking for a venue where you could be taught this.

There are venues which offers this but please be careful as scams are not far from this. On my end, I learned this in Wealth Academy. Wealth Academy taught me everything that an investor should know, it taught me so much, it made me an Associate Financial Planner. (My certification has just expired, it’s just a matter of renewing it now.)

Wealth Academy is the educational arm of International Marketing Group or IMG and here is a plus, the first series is free!

Just like going to war, you need to be equipped, trained and disciplined. Investing is the same way, with proper training and education, you can’t lose!


All credit goes to LeniProduction for the picture above from I do not own the picture.