It seems a little odd to compare stocks to mutual funds. Actually, mutual funds are largely composed of stocks. It is important to make the distinction between the two as there are some very real advantages to using mutual funds. It is fun to invest in individual stocks because each company has its own story to tell. However, you want to focus on making money! Investing is not a game and should not be taken lightly.

Just for the record, bond funds have actually outperformed over the past 30 years; and over the past dozen years they have clearly been the best mutual funds , and perhaps the very best investment for the average investor. When investing for 2013, 2014 and beyond the stock funds vs. bond funds debate SHOULD BE on your mind. After all, these are traditionally the two best investment options for average investors who want growth and income, and are where most investors put their money.

But if you do plan on leaving it alone and you plan on investing in growth stock mutual funds, you will find that the risk to return ratio is quite amazing. You could make more in individual stocks, but you have to determine if the risk is worth it.

Since the beginning of the year 2000, stock funds vs. bond funds have paid much lower dividends, AND have experienced heavy losses in TWO severe bear (down) markets. Average investors have lost confidence in equities, and now many consider the stock market too risky. In deciding which are the best mutual funds and your best investment for 2013 and 2014 keep this in mind: both have significant risk going forward. On the other hand, only one of these investment options has the potential for high returns, while the other has limited prospects for gaining significantly in value – plus plenty of downside risk. If the interest rate trend turns around and rates rise significantly, fixed income debt securities WILL be losers and WILL be BIG LOSERS if interest rates go up big time. They can’t be big winners if rates continue to fall… because interest rates are already ridiculously LOW and can’t fall much further. Equities or the stock market is a more difficult call, but generally speaking when money leaves the debt securities market some of it flows to equities which tends to support stock prices. That’s the advantage of stock funds vs. bond funds as the best mutual funds going forward. They have upside potential, while bond fund returns are limited.

If you are a wealthy stock investor, then you have it made because you get preferential treatment from the brokers. Wealthy bank account holders usually get the red carpet treatment from the banks. However, mutual funds do not discriminate. Whether you only have a paltry $50 or a huge sum of $500,000, you all get the same manager, the same investment and the same account access.

If you need money now, like I mean in the next hour, try what I did. I am making more money now than in my old business and you can too, read the amazing, true story, in the link below. When I joined I was skeptical for just ten seconds before I realized what this was. I was smiling from ear to ear and you will too.

Frank Miller has a Debt Consolidation Blog & Finance, these are some of the articles: For Top Results You Must Enquire What Is The Current Price Of Gold Per Ounce You have full permission to reprint this article provided this box is kept unchanged.