1. Often investors indicate that diversification and professional management are the two main reasons they choose mutual...

Question:

1. Often investors indicate that diversification and professional management are the two main reasons they choose mutual fund investments. How important do you consider these two factors? Why?
2. According to the Racines, everybody was investing in - indeed, it seemed almost fashionable to invest in In your own words, what did the Racines do wrong?
Mutual Funds
Mutual funds are like a pool of funds gathered by different small investors that have simalar investment perspective about returns on their investments. These funds are managed by professional investment managers who act smartly on behalf of the...