Higher Safety

　　Avoiding investing the risky stock directly is another important reason that Americans prefer mutual funds. Though shares have higher rate of return, benefits and risks are closely linked. The ordinary people can not judge which one is better when they are facing thousands of shares and stocks. But if they buy funds, there will be a professional investing group to gain profit for you and achieve investing diversity and disperse investing risk. As the spokesman Edward Gordon said “When the Americans were at a loss facing too many shares and stocks, they found investing mutual funds was their main road.”

　　The survey shows that 42% of the funds owners believe that because the share market is risky they choose to buy mutual funds which are safer. To disperse and combine moneys to invest is a magic tool of the mutual funds because it is difficult for the ordinary investors to disperse national risk and share profits in the overseas market through global capital market, but the fund company can do that.

　　In 2006, 811 billion dollars funds out of 4 trillion 800 billion dollars(17%) were invested in the foreign companies?in order to get higher profits in overseas market than in wall street, which was the highest percent of American mutual funds to own the overseas security assets.

　　Practice shows that benefit from investment on fund of abroad market especially new market is usually higher than that of USA national market. Take 2005 and 2006 as examples, average rates of fund return of international market investment were 6% and 12.9%, and average rates of fund return of American national market investment were 11.5% and 20.2%, among them, average fund return in China, India etc Asian new market is as high as 19.9% and 36.9%, making the owners laughed happily.