RE: MFs are slow, but they grow.
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You are so right. MFs are investment vehicles for the 'lazy', I always say. My long term investments, pension and savings to pay off my mortgage are all in MFs, for decades already. Some of them I deposit new funds into every month, automatically. Never really calculated the gains, but most years I see greens. Sure, when the stock markets explode, MFs dont explode, but at the same time when the market crashes (eg 2008, 2020), these MFs dont dip to hard as well. When going long term, ie decades, I believe MFs are the best. Those investing in stocks, across the world. I have one MF investing mostly in state bonds. They show a shit performance, but this was expected with all the years of zero interest rates. Firtunately, I have just pushed a handful of dollars in that MF.
Oh!! Damn, I missed this awesome comment.
You have the right Idea.
Direct stocks are a bit too risky for the long term unless you are a veteran in the stock games. I dont recommend it. The gains can easily get wiped out in a market crash, or a company screw up. MFs soften the blow in such cases.
How do you select an MF? I am sure just a random look at the profile isn't enough.
Honestly, I took the laziest of the lazy approach, my pension MFs are defined by the pension company/insurance. I can tell them what profile I want, from lowest of lowest risk (bonds incl state bonds + interest given assets) to highest risk (stocks incl emerging countries and such), and some profiles in between. Same thing for my mortgage. Every few years I review this, planning to change profiles, but never really do this. Most are in the highest risk profile they offer, which is still kinda safe.
Oh!! It's more like a recommendation from the Asset Management service. Nice..
It looks like the laziest approach is well-balanced and working out for you. I will have to wait till April to decide if I should restructure my portfolio or continue.
Cheers🍻