While exchange-traded funds have captured the hearts and minds of investment allocators since the late 90's, traditional mutual funds - the major competition to exchange-traded funds - are hardly obsolete. In fact, there are many reasons why investors would still opt for mutual funds instead of ETFs.

Some Funds Charge Lower Expenses

Fund managers don't work for free. They take a portion of the fund's total value as their payment. However, managers of ETFs also charge a management fee that can be just as high as the cost of a mutual fund (and eat into the fund's value). So, high management fees can be an issue for both kinds of funds...not just mutual funds.

That said, though mutual funds have been criticized for high fees, not all of them are guilty of the crime - plenty of them have done very well at keeping costs low.

• Financial Services Pru Funds

• National Association Of Insurance Guarantee Funds

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