What are the benefits of investing in MF?
The benefits involved in investing in Mutual Funds are as given below: Professional Management – For an average investor, it is a very tedious job to decide in what securities to enter, how much to purchase and when to exit. When you purchase a mutual fund, you are entitled to the professional fund manager who manages your money. It is the fund manager who decides what to buy for you, when to buy it and when to sell. These decisions are backed by the research on economy, industries and companies. Obliviously, you are required to pay, for the professional expertise you are using, in terms of the expense ratio or entry load or exit load. Limited Fund – If you have limited amount of money with you, you can buy stocks of one or few companies. While putting your money in Mutual Fund you can purchase a bunch of stocks with the same amount of money. Diversification – When you put your money across several securities, your risk is reduced to a great extent. A mutual fund is able to diversify m
