Mutual fund is a professionally managed investment scheme that pools money from different investors having same financial goals. Mutual funds may invest in variety of instruments like stocks, bonds, money market securities, gold or a combination of these which provides diversification to your investments.
Fund Managers have crucial market information that helps them execute trade in lucrative way. By distributing your money across different types of investments, investing in multiple companies and in more than one sector, they ensure that the portfolio is efficiently diversified.
- Benefits of investing in a mutual fund are numerous. Some of them are:
- Daily Liquidity
- Professional Investment Management
- Increased Diversification