{"id":1634,"date":"2024-04-24T10:01:50","date_gmt":"2024-04-24T10:01:50","guid":{"rendered":"https:\/\/jamawealth.com\/askguru\/?p=1634"},"modified":"2026-03-02T19:24:25","modified_gmt":"2026-03-02T19:24:25","slug":"why-are-mutual-fund-investments-not-giving-as-much-returns-as-stocks","status":"publish","type":"post","link":"https:\/\/maxiomwealth.com\/askguru\/2024\/04\/24\/why-are-mutual-fund-investments-not-giving-as-much-returns-as-stocks\/","title":{"rendered":"Why are mutual fund investments not giving as much returns as stocks?"},"content":{"rendered":"\n<p>Think of mutual funds like a large ship which takes time to manoeuvre. After all most of them carry 50 to 100 stocks, if not more. The reasons for lesser returns are usually such over diversification, having to stick fo caps on how much cash to hold, how much exposure to have on a certain sector, a specific stock etc.<\/p>\n\n\n\n<p>Whereas a single stock is like a jet ski sizzling across. The risk of falling is higher with a jet ski but if you know how to ride, or better use a speed boat with a good co pilot, then you may actually do well.<\/p>\n\n\n\n<p>Mutual Funds are great for the long term, but over time if you can manage to ride the stock market well, then you would want to have a good distribution between the two.<\/p>\n\n\n<!-- mw-cta-block -->\n\n<div class=\"mw-cta-block\" style=\"background:#EEF3FC;border-left:5px solid #1C52A0;padding:22px 26px 20px;margin:36px 0 24px;border-radius:0 10px 10px 0;\">\n  <p style=\"margin:0 0 4px;font-size:11px;font-weight:700;color:#276FC4;letter-spacing:1px;text-transform:uppercase;\">Maxiom Wealth \u2014 Free Tool<\/p>\n  <h3 style=\"margin:0 0 10px;font-size:19px;font-weight:700;color:#113E81;line-height:1.3;\">Is Your Mutual Fund Working Hard Enough?<\/h3>\n  <p style=\"margin:0 0 18px;color:#444;font-size:15px;line-height:1.65;\">Two funds with similar star ratings can deliver very different outcomes. Use our fund comparison tool to check if you&#8217;re in the right scheme for your risk profile and investment horizon.<\/p>\n  <a href=\"https:\/\/maxiomwealth.com\/resources\/calculators\/better-funds-checker\" style=\"display:inline-block;background:#1C52A0;color:#fff!important;padding:11px 22px;border-radius:6px;text-decoration:none;font-weight:600;font-size:14px;margin:0 10px 8px 0;\">Compare Funds \u2192<\/a>\n  <a href=\"https:\/\/maxiomwealth.com\/meeting\" style=\"display:inline-block;border:2px solid #1C52A0;color:#1C52A0!important;padding:9px 22px;border-radius:6px;text-decoration:none;font-weight:600;font-size:14px;margin-bottom:8px;\">Talk to a Financial Advisor<\/a>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Think of mutual funds like a large ship which takes time to manoeuvre. After all most of them carry 50 to 100 stocks, if not more. The reasons for lesser returns are usually such over diversification, having to stick fo caps on how much cash to hold, how much exposure to have on a certain&hellip;&nbsp;<a href=\"https:\/\/maxiomwealth.com\/askguru\/2024\/04\/24\/why-are-mutual-fund-investments-not-giving-as-much-returns-as-stocks\/\" class=\"\" rel=\"bookmark\">Read More &raquo;<span class=\"screen-reader-text\">Why are mutual fund investments not giving as much returns as stocks?<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[214,38],"tags":[],"class_list":["post-1634","post","type-post","status-publish","format-standard","hentry","category-mf-vs-stocks","category-mutual-funds"],"_links":{"self":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/1634","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/comments?post=1634"}],"version-history":[{"count":1,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/1634\/revisions"}],"predecessor-version":[{"id":3413,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/1634\/revisions\/3413"}],"wp:attachment":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/media?parent=1634"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/categories?post=1634"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/tags?post=1634"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}