Alright, let’s get this out of the way: Mutual funds are still a thing in 2025. Yeah, you heard me right. You’d think that in a world where everyone is swiping through endless TikTok videos about “disrupting finance,” mutual funds would be hanging out with flip phones and AOL dial-up. But no. Mutual funds are like that reliable friend who never lets you down—even when you wish they would.
Look, we get it: ETFs are cool. They’re like the edgy kid who shows up to the party with the good playlist and a mysterious aura. But despite the rising popularity of exchange-traded funds (ETFs), mutual funds are still hanging around like that person who always shows up at the family BBQ with a six-pack of Budweiser. They’re not flashy, but damn, they’ve got staying power. And guess what? They’re still the “go-to” for most investors in 2025.
So, grab your expensive cold brew and prepare to explore the question of “why are mutual funds still popular?” Spoiler alert: It’s more complicated than you think. But don’t worry, I’ll make it fun.
Mutual Funds Are Basically The “Avocado Toast” of Investing
We all know that one friend who says, “Why spend $5 on avocado toast when I can just eat an egg sandwich for 99 cents?” They’ll never understand. But we’re not here to talk about that person. We’re talking about you, the investor in 2025 who just can’t seem to quit mutual funds. It’s like that comfort food investment that you know you probably should outgrow, but it’s just too easy to enjoy.
Here’s the thing: Mutual funds are so popular because they’re just… predictable. They give you that warm, fuzzy feeling that something’s being taken care of, even if you’ve never read an annual report in your life. And let’s be real—most people, especially in the 18 to 35 age range, don’t want to actually do the work of investing. Why bother? Let someone else pick your stocks for you. That’s basically what mutual funds are. A bunch of experts at the helm, picking and choosing investments for you while you sit back and scroll through TikTok. Who doesn’t love that, right?
Yeah, ETFs are cool, but they require more attention. They’re like the high-maintenance friend who texts you 20 times a day. “Did you buy Apple stocks today? How about a little crypto?” No, thanks. We don’t need that kind of pressure when we’re just trying to watch the new episode of The Bachelor.
The “Set It and Forget It” Vibe We All Crave
You know those people who buy a new phone every year even though their current phone works just fine? Yeah, the same people who swear by iPhones and will never, ever, ever switch to Android. Same goes for mutual funds. They’re like the iPhone of the investment world. They’re reliable, not too flashy, and honestly, you’re not likely to get a terrible experience (unless you pick the wrong one—but let’s not go there).
Mutual funds are like the “set it and forget it” investment option. You throw your money in, and it hopefully grows over time. You don’t have to be glued to your screen, hitting refresh every five minutes like you’re tracking the latest GameStop frenzy. No, you’re in good hands—just like when you hit “skip intro” on Netflix and settle into your couch with zero thoughts.
Let’s be honest: Not all of us have the energy to constantly check how our investments are doing. Some of us are too busy battling slow Wi-Fi on a Zoom call or pretending to understand what’s going on in our Slack channels. We don’t need an ETF telling us that now is the perfect time to sell. That’s a headache.
Mutual Funds Are Like Your Retirement Fund’s Parent—They’re In Control (But In A Good Way)
Okay, so this one’s for all the millennials who still secretly think they can retire at 40 and live off Instagram influencer money. (Spoiler: You probably can’t.) But here’s the thing about mutual funds:They’re a wonderful retirement option for people who aren’t really interested in making investment decisions every 10 minutes. You’re going to want someone to manage your retirement savings, and guess what? That’s where mutual funds come in.
Think of it like this: A mutual fund is that one aunt who makes sure your 401k isn’t an absolute dumpster fire. They’re there, managing your investments, taking care of things while you’re busy drinking an espresso martini on a Friday night. ETFs? Well, ETFs are more like the hipster cousin who will tell you, “You know, you could do it all yourself and save a ton of money!” Yeah, but no thanks. I appreciate the offer, but I’m currently occupied with evaluating other subscription services.
The Fees—Oh, You Know We Can’t Ignore Them
Let’s talk about fees, because everyone’s favorite topic is here. Mutual funds are not free—no kidding—but they’re also not that expensive. It might be worth it if you’re willing to pay someone to manage your portfolio. Here’s the kicker though:Is that an annual fee? It’s not as awful as what you’d pay for a therapist in 2025 (I mean, seriously—those sessions are expensive).
ETFs, on the other hand, can be way cheaper. Sure, you’ll save a buck, but there’s a trade-off: You have to do all the work. And by work, I mean deciding which ETF to invest in, tracking the markets, and actually pulling the trigger on trades when the time comes. Yeah, fun. But if you don’t want to do the mental gymnastics of picking stocks, mutual funds are a much better deal.
Mutual Funds: They’re Just Always There (Like That Comforting ‘Lazy’ Playlist)
Mutual funds are like that playlist you keep on repeat because you know what you’re getting. There’s no drama, no surprises—just some good, solid, low-key music to vibe to. And that’s why they’re still so popular in 2025.
They’re there when you’re too worn out to do anything else. You don’t need to review your investments when the stock market is in turmoil. Someone else is watching your money, making sure you’re not about to lose it all. What is the situation with ETFs? Well, you’re basically riding solo on a stock market rollercoaster, and that’s fine if you’re into that sort of thing. But if you’re just trying to stay alive through the workday without screaming into your computer screen, mutual funds are here to help.
Conclusion:
Congratulations, you made it to the end. Are you still thinking about ditching mutual funds for ETFs? Or are you secretly relieved you don’t have to keep track of every single stock? If you made it this far, I’m guessing you get it now—mutual funds are still here in 2025 because people just like them. They’re safe, they’re predictable, and they let you get on with your day.
So, here’s to you, the mutual fund investor who’s willing to pay for that peace of mind. Go ahead, let someone else handle the hard stuff while you go enjoy your life. I mean, someone’s got to keep the lights on.
