What are the advantages of investing in mutual funds?

What are the advantages of investing in mutual funds?

Expert Solution

Advantages of investment into Mutual Funds are as follows-

A. Mutual Funds are offering with the professional management of the investment of an individual

B. there is a very high degree of transparency and mutual funds will always offer them with complete transparency of their value of units through net asset value

C. Mutual Funds will also offer them with a very high degree of diversification which will be eliminating the risk associated with the investment

D. Mutual Funds are also continually regulated and they are offering various types of customised facilities to the customers according to their needs

E. Mutual Funds are also doing distributions in form of capital gains and they are not just distributing dividend

F. Mutual funds can be active or passive depending upon the style of investment of the investor's.

G. There is a very high degree of liquidity which is embedded into the investment into Mutual Funds.

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