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[quote=Anonymous]If you own shares in a mutual fund, you directly benefit from the performance of the shares in that fund.

What you are saying would make sense if you were urging people to follow some investment theory or run algorithms and try to get rich by picking stocks that will outpace the market.  However, you are advising people to pick tried-and-true blue chip companies.  This is absolutely not different at all from someone investing in, say, an S&P index fund -- only if you invest in an index fund, you don't have to worry about which stocks you currently own, which ones you need to swap out, etc.  You can invest, turn your mind off from the subject, and get those 10% returns you have mentioned without ever thinking about it.

You talk about putting "meager shillings" into an s&p fund, but you point out that the market historically has returned 10% annually.  You then say that by buying individual stocks, people can earn 10% annually.  HOW DOES IT NOT MAKE SENSE FOR PEOPLE TO JUST INVEST IN THE MARKET ITSELF IF IT RETURNS 10% ANNUALLY?  Why do they have to worry about researching individual stocks, buying them, then hoping they match or exceed the performance of the market (when history has told us they probably won't)?  Please explain this. [/quote]

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