Mutual Funds

A mutual fund is simply a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. As you probably know, mutual funds have become extremely popular over the last 20 years. What was once just another obscure financial instrument is now a part of our daily lives. In fact, to many people, investing means buying mutual funds. After all, it’s common knowledge that investing in mutual funds is (or at least should be) better than simply letting your cash waste away in a savings account. 

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Advantages of Mutual Fund

Professional Management:

A mutual fund is a relatively inexpensive way for a small investor to get a full-time manager to make and monitor investments.

Diversification:

In mutual funds it means spreading your investments across different asset classes to reduce risk and achieve balanced returns.

Economies of Scale:

Because a mutual fund buys and sells large amounts of securities at a time, its transaction costs are lower than you as an individual would pay.

Liquidity:

Just like an individual stock, a mutual fund allows you to request that your shares be converted into cash at any time.

Simplicity:

Buying a mutual fund is easy! Most Companies have their own line of mutual funds, and the minimum investment is small.

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Mutual Fund investments are subject to market risks, read all scheme related documents carefully.