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Originally Posted by Milkman Mutual funds are for people who basically don't know what they are doing. The recent reports for the last 20 years are absolutely awful. I have 11 funds that I've carefully chosen. But mutual funds are a poor man's game. |
I have been getting 10-12% return on most of my funds for years, thats plenty for me. Considering that there is absolutely no effort required this is not a bad return. Most other investments require significant time and energy, I don't have the time to get involved in business ventures when I am working full time.
Maybe this will change in the future but who knows. It is possible that my funds will go tits up someday but I am pretty well diversified and anything other than a global recession shouldn't hurt me too much. Currently I am over exposed to the Canadian economy but I will rectify that when my house sells and I move my non-RRSP investments offshore.
On the other hand if you have under $100k invested in mutual funds the returns will not be that significant and it will take many years before they grow to the point that they will support you. Opening a small business will return much more $ if it is successful but in most cases to make them successful you have to work your ass off.