01/08/2025
In addition, individual stock investment helps avoid the "industry drag" problem. Many traditional stock funds, because they must track indices, may hold stocks of companies from sunset industries or underperforming companies. These companies may experience weak performance during economic downturns, dragging down the overall performance of the fund. However, when investing in individual stocks, investors can actively choose high-growth, trend-driven companies, concentrate their funds and avoid these inefficient companies, thus achieving more stable returns.