suhre@trw-unix.UUCP (07/21/83)
One facet of mutual funds that I forgot to mention in my last posting is that they offer a way to get diversity within a specialized class of stocks. For example, there are funds that specialize in high-tech, gold, small businesses (hopefully the future IBM is in there somewhere), etc. If you can guess (analyze) where the action is going to be, then it may be possible to find a fund which will position you in that area. The area of emerging companies is one where an individual investor would be hard pressed to get the diversity which is required for prudence. Somewhat like betting on long shots--you may have several losers before the big winner. Even if you were willing to buy 2 shares in each of 50 companies, can you follow that many companies???