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Mutual Funds
A mutual fund is an investment fund that pools money from many investors to purchase securities. The term is typically used in the United States, Canada, and India, while similar structures across the globe include the SICAV in Europe and open-ended investment company in the UK
Because there are funds based on specific trading strategies, investment types, and investing goals.
Choosing your own mix of funds is an easy way to build a diversified portfolio.
Risk Management
Mutual funds provide adequate diversification and an investor can easily use mutual funds to spread risks and keep his/her portfolio safe.
Professional Management
It takes time and expertise to successfully research and choose securities. Mutual fund managers can provide both, along with trading efficiency.
And because mutual funds have multiple investors, the fund manager can make large trades, which results in a cost-effective, diversified portfolio.
You can open a mutual fund account with a relatively low investment. If you choose an open-end mutual fund, you can continue investing at any point in the future. Mutual funds also offer investors liquidity so you can redeem your shares at any time.
