When you invest in a mutual fund, you are buying shares (or portions) of the mutual fund and become a shareholder of the fund. Mutual funds are one of the best investments ever created because they are very cost efficient and very easy to invest in.
Mutual funds are ideal for investors who do not like to put all their eggs in one basket. Along with diversification, mutual funds offer the advantages of professional management of funds and low costs. Investment in mutual funds offers the following advantages:-
- · Diversification of portfolio
- · Professional management
- · Low cost
- · Tax Benefits
The investment portfolio of a mutual fund’s investment is continuously monitored by the fund manager.