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Because not many investors know how to track the stock market and choose stocks effectively. That is why they prefer Mutual Funds where an expert fund manager does this on our behalf

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13y ago

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Related Questions

Which instruments invests money from many investors in stocks and other securities?

Mutual funds and Hedge Funds


Which of these instruments invests money from many investors in stocks and other securities?

mutual funds


Which of these instruments is a professionally-managed collection of money from many different investors?

mutual funds


What is a non load mutual fund?

A no-load mutual fund is one that does not charge a fee to investors. Many mutual funds have a "load" or initial fee, often around 5%, that investors must pay in order to buy in to the fund. No-load mutual funds lack this fee, and earn money for their managers in different ways. Most index funds are no-load funds.


What services do mutual funds offer investors?

many funds provide their investors with such services as check-writing privileges, custody (as a service), and bookkeeping. Investors also benefit from the knowledgeable investment choices of securities


What is a mutual fund what are the advantages of owning mutual funds?

Mutual funds are a professionally managed investment that pools money from many investors to buy stocks, bonds and other securities. The advantages of this sort of investment are numerous. Mutual funds allow investors to diversify over numerous securities, chose investments that match their goals, and do so while enlisting professional management. Mutual funds come in two basic types: index funds and actively managed funds.


What is the invest the pooled contributions from many investors in different types of securities to decrease risk?

Mutual funds


Information on mutual funds?

Mutual funds work on the principal that it is sound to diversify your financial investments. While many individuals do not have the capital to sufficiently diversify their financial portfolio by have a group of investors pool their money they can have a very diverse portfolio with even a modest investment. The pool of money is managed by a fund manager who takes a fee which is a annual percentage of the value of the fund.


What kind of information is available at the investors edge website?

At the Investors Edge website one can use their brokerage to invest one's money with them. They offer low cost trades and have many choices of investments, like stocks and mutual funds.


What is mutual fund and its type?

A Mutual Fund is an investment instrument wherein a capable and experienced fund manager would pool in money from investors and invest in the stock market on their behalf and share the profit with the investors. There are many varieties of mutual funds which include:Equity fundsDebt fundsMoney market fundsExchange Traded fundsMonthly Income PlansHedge FundsContra funds etc


Summary for mutual fund awareness?

Mutual Fund An investment vehicle which is comprised of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market securities and similar assets. Mutual funds are operated by money managers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus. Reliance Mutual Fund can be taken as an exemplary outstanding Mutual funds available at present.


How many of public limited mutual fund companies are existing in India?

Many I should say. SBI Mutual Funds, Canara Rebecco, UTI are all public limited companies that offer mutual funds to investors. But, private players are even more in number than these public limited ones.