You had it.
If you have $100 to invest you will have a hard time finding someone to take it outside single stocks. Then you cannot diversify to any real extent with $100 which, as Wutang tells us, is important when investing. Since investing is gambling you never know but funds do have average returns that are actually hard not to hit with a reputable manager. Also, people who are decades away from being able to retire are also kicking in their money every month with the promise of the same when they near retirement.
So you have more money to invest into more varied areas and are receiving funds from people who do not expect a return for decades.
[–] pumeler ago
I quote this video to people all the time. I love it.