What are the advantages of investing in an open-end mutual fund?
Major advantages of investing in an open-end mutual fund includes: • Professional Management: The fund manager is an investment specialist who manages the fund’s investment portfolio on a continuous basis. The fund manager’s job is to analyze the financial markets for the purpose of selecting those securities that best match a fund’s investment objectives. • Diversification: Mutual fund provides investors, exposure to a diversified portfolio of investment instruments and reduces the investors’ overall portfolio risk. • Liquidity: Investors holding units of open-ended mutual fund will be able to invest and disinvest anytime to match their particular liquidity needs with little or no transaction cost as opposed to a bank’s term deposit scheme. • Flexibility: As investment goals change, investors can transfer part or all of their investments from one fund to another to achieve different objectives. • Tax Benefits: Investment in Mutual Fund enables you to get tax rebate of upto Rs. 60,000/
