A mutual fund is a pool of money from numerous investors which is collectively invested by a fund manager. Investing in a mutual fund can be a lot easier than buying and selling individual stocks and bonds on your own. Mutual Funds offer both 100% debt to 100% equity and also hybrid products with combination of equity and debt.
Mutual funds allow investors to pool in their money for a diversified selection of securities, managed by a professional fund manager. It offers an array of innovative products like fund of funds, exchange-traded funds, Fixed Maturity Plans, Sectoral Funds and many more.
Mutual Funds can help you to generate better inflation-adjusted returns, without spending a lot of time and energy on it.
Mutual funds have a dedicated research team who assist the experienced fund manager to handle the financial decisions to achieve the objectives of the mutual fund scheme.
As compared to investing directly in capital markets, mutual funds offer the biggest advantage of low cost of investment.
Mutual funds help mitigate risks to a large extent by distributing your investment across a diverse range of assets.
Mutual funds offer high liquidity as you can withdraw your money anytime except in the case of ELSS schemes which have a lock-in period of 3 years.
Based on medium or long-term investment, mutual funds have the potential to generate a higher return, as you can invest in a diverse range of sectors and industries..