Mutual Funds Pros Mutual Funds Cons

Professional management: mutual funds are managed by a financial professional Professional Management: money managers are not always reliable
Diversificaton: mutual funds invest in multiple companies which spreads out the investment risk Manipulation: the mutual fund industry can cover up costs
Economies of scale: mutual funds are cheaper because they buy and sell large amounts of securities Dilution: funds can be overdiversified and only own very small shares, which will not equal a very high return.
Liquidity: mutual funds are able to be turned into cash quickly Taxes: fund managers do not consider peoples personal tax situation which can affect capital gain
Buying a mutual fund is easy.
Mutual funds are a safe and easy way for the average person to invest.

Stocks Pros Stocks Cons

Personalization: you can choose which stocks to buy and create your own portfolio Risk: stocks have a high risk and no not garantee a divident payment
When you buy a stock you own a small share of that company In order to build a good portfolio you have to buy several stocks
You have the ability to chose when you buy stocks
Risk: the risks of buying stocks can earn a higher profit

Bonds Pros Bonds Cons

There is less risks in owning bonds. Bonds offer a less significant return than stocks.
Since there is less risk, bonds are a better option for an investor with a shorter time horizon. Bonds are less exiting than stocks.
Bonds are also a good option for those who cannot affort to lose money on an investment. You do not technically own bonds.
Bondholder will get paid before a shareholder.