MUTUAL FUNDS,

BONDS, AND
STOCKS
Pros and Cons

PROS: STOCKS
Compared to other investments,
in the long run, stocks typically
have the potential for higher
returns. Some stocks also pay
dividends, which is a good
cushion

CONS: STOCKS
When buying stocks, there is no
guarantee for returns. The
prices for stocks can also fall
and rise dramatically.

PROS: BONDS
Bonds do not rise and fall as
dramatically as stocks do.
Some can also provide a level
of income stability and
liquidity.

CONS: BONDS
In the past, bonds have provided
lower long-term returns than
stocks. When interest rates go
up, bond prices fall causing a lot
of fluctuation.

PROS: MUTUAL FUNDS

Diversification will relieve you of the
risk of investing in only one
company. You will have professional
money management and systematic
investing

CONS: MUTUAL FUNDS

You will have a lack of ownership
when using mutual funds. You may
feel overwhelmed with all of the
stock funds you have to choose from.