Advantages of a Mutual Fund
Advantages of a mutual fund
1.Disversification
2.Professional Management
3.Minimal Transaction Cost
4.Flexibilty
5.Service
Diversification:
Investing in a single security i.e. stock or bond can be risky, where as owning a mutual fund that holds numerous securities reduces risk significantly.
Professional management:
It is difficult and time consuming to pick the best stocks and bonds for your portfolio. It requires continuous and sustained effort. Allowing a professional mutual fund manager to make decisions about stocks and bonds for you can save you time and frustration.
Minimal transaction costs:
Buying individual stocks and bonds is expensive in terms of transactions costs. Each time an investor buys or sells, they have to pay a brokerage fees along with many other expenses. Since, the scale of purchases and sales are huge, the transaction cost for mutual funds are less.
-goodreturns
Stocks and Share Analyst
MR.K.P.PRABHAGHARAN,
KKP CAPITAL, 9894333189
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