Summary of Adding Stocks to a Fund Portfolio

It is understandable that so many people find mutual funds so appealing—they are convenient, diversified, and managed by others, to begin with. And that's where many investors would like to stay.

But an intrepid few like the idea of making their own portfolios on the side. Striking out on their own lets them buy the stocks they want, sell any that might want to sell, and get some satisfaction from having made their own personal "funds," so to speak. And they don't need to avoid mutual funds while they do so. With the advantages of growth, cost, and capital gains taxes, it may pay to look into starting your own little side fund.