For the majority of Americans mutual funds are a great way to get exposure to stocks. However, there is an ongoing debate in the mutual fund world as to whether actively managed funds are better than index funds. If you’re unfamiliar with this debate, you might consider checking out the following video from Kiplinger – it lays it out pretty well in under 3 minutes.
Just as an aside…if you are looking for well managed active mutual funds we like the following:
DODGX: Dodge and Cox Stock Fund
IDGTX: ING Global Real Estate Fund
IDROX: ING Real Estate Fund
All three of these funds have made us money consistently for the past 10 years.
We do not like any of TIAA-CREF’s family of funds. They have a remarkable talent for underperforming the S&P 500 and charging a lot for it.