Register for Client Education Seminar. Learn More »

Know the Score: Direct Stock Investing or Mutual Fund?

by AOG Wealth Management

Imagine this situation: people in Reston were buying stocks and it did not matter to them if they only had a small amount of money each month to invest. However, they didn’t have the time to keep track of the market due to their day jobs and other activities. Still, they proceeded anyway because there was a promise of huge profits. The result? In this scenario, nine times out of ten would be failure.

 In reality, direct stock investing is more suited for people who have the knowledge and skill to make the right picks and have the time to monitor and manage their investments on a daily basis. If you are a busy, working professional, you may find it impossible to do this in a sustained manner over a long term.

In contrast, mutual funds would also require knowledge and skill, but it can be acquired by doing a just little research and with the help of a Reston wealth management advisor. Given that these portfolios are managed by professional fund managers, a mutual fund can be left to grow independently and tracked less frequently than a stock portfolio. Additionally, this latest development on the standing of mutual funds should encourage you:

This is when it should pay for a money manager to have maximum flexibility: the option to go almost anywhere with investors’ dollars in search of decent returns.

There are a few reasons these funds are worth a look now. First, U.S. stock prices are at or near record highs after the stunning gains of the last five years.

Second, the global economy’s rescue by central banks over the last five years has entered a new chapter. The U.S. Federal Reserve has begun to cut back on the torrent of money it has been supplying to the financial system to keep interest rates down.

Third, while share prices in the developed world have surged in the last few years, emerging markets overall have slumped in the face of weaker economic growth, rising inflation and political upheaval. For value-hunting investors, that means potential opportunities.

After you’ve decided to make the leap, the most important task is to look for a Nova wealth management firm that can commit to provide you with stewardship of your financial resources so you can continue to accumulate and safeguard your assets. AOG Wealth has an advisory team made up of industry advisors who will guide your venture into mutual funds, and you can be sure that they will take care of your investment well – after all, the company is backed by more than 100 years of combined experience in the field.

(Article Excerpt from This could be the right time for ‘go-anywhere’ mutual funds, latimes.com, April 6, 2014)

Category: Blog, Industry News