Mutual fund investment is one of the most popular investment vehicles for almost every investor with limited knowledge, time or money.
They are often well regulated by government bodies such as Securities & Exchange Commission (SEC) in US & Securities & Exchange Board of India (SEBI) in India.
You can choose to invest in any type of mutual fund. Some of the popular funds include stock or equity funds, money market funds, bond or fixed income funds, and hybrid funds.
Mutual funds allow pooling of money from several investors to purchase diversified form of securities. They are known to work under the guidance of professional fund managers.
You can easily & safely invest your hard earned money in mutual fund for generating wealth. Here are 25 big reasons to have your investments in mutual funds:
(1) Portfolio Diversification
It is one of the most common reasons to have your investments in mutual funds. Mutual funds tend to reduce the risk of investment in stocks to a greater extent. It is done by just diversifying your money across a wide range of assets.
Investors with limited amount of funds can easily reap the benefits of portfolio diversification. It is usually performed under the supervision of a professional team of mutual fund money managers.
Stock funds usually hold around 50-500 stocks in their portfolio. This strategy is to limit the risk of any insignificant loss caused by unexpected collapse of any one stock. Thus, you can get the benefit of big portfolio with small amount of money.
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