Mutual Funds are often misunderstood as a complex investment vehicle. However, in reality, they are pretty simple in their investment philosophy and offer investors a host of benefits such as-
- Diversification,
- Professional Money Management,
- Economies of scale,
- Transparency,
- Liquidity,
- Tax benefits,
In simple words, mutual funds are a pool of investments comprising different securities such as Equities, Debt instruments, and money market instruments, etc.
These holdings form a mutual fund and each individual combination is also referred to as a portfolio. It is quite challenging for most investors to manage their own money and the task of studying and analysing various companies simply adds on to their challenges.Mutual Funds Investments offer you with a professional fund manager at a nominal fee. This designated fund manager analyses, tracks, and transacts various securities on your behalf. This can be a major advantage for those who cannot find the time to do their research.
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