should i invest in index funds/etfs or individual stocks?
Should you invest in Index Funds/ETF's vs Individual Stocks?
Your decision to invest in either individual stocks or Funds should consider the factors below:
Investing in Individual Stocks means:
Time to research the company’s financial performance
Emotions with the volatility of the market
To hold on to the company and not to sell quickly
Risk involved with the fluctuations of the market
Likelihood of higher returns on your initial investment when held over a period of time
Investing in Index Funds means:
Your investment is diversified as you invest in a sector or several companies at once
Your risk is minimized if one company’s stock performance falls you can rely on another company’s stock within that sector or in that index
You can save time by not having to analyse and review the performance of an individual stock
You can't pick the stocks invested
Your returns however are not generally as high compared to investing in individual stocks
