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By investing in a mutual fund you can diversify your investment which means that you can buy a variety of assets without paying a huge amount of money. Diversifying helps reducing the risk of your investment and at the same time enables you to cover a broad range of investments. Although there are many advantages of mutual funds it is important to keep costs as low as possible because most fund managers fail to perform better than the market and additional costs cut the average return of 8-10% by 1 or even 2 percentage points. Most importantly MFs are managed by professional fund managers whose choice of buy/sell call would be better than ours (In most probabilities) Because the fund is managed by professionals with experience we can expect the money to make good returns (Provided you choose a reputed fund house with a successful fund manager)

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Q: Why should you invest in a Mutual Fund?
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Related questions

Can banks invest in mutual funds?

They can invest their own income/profits in a mutual fund but they cannot invest the depositors money in a mutual fund


When you own a mutual fund what exactly do you own?

Mutual fund is a low risk investment. If you invest in a mutual fund, you owns shares of the mutual fund company who is selling you fund. But you do not actually own any underlying asset of the stocks or securities that mutual fund has invested in even they are using your money to invest.


Can Indian mutual fund invest in shares and securities abroad?

Yes, they can. But, not all mutual funds can invest in shares and securities abroad. They can only do so, if the mutual fund scheme has it in the fund objectives.


What are people who invest in mutual funds called?

They are called Mutual Fund Investors or Mutual Fund Unit Holders.


What companies did filipinas mutual fund invest in?

insurance


Did George Bush created a mutual fund?

There is a Bush Era mutual fund created in 2005 called the Roosevelt Anti-Terror Multicap fund. This mutual fund does not invest in any companies from North Korea, Sudan, Syria, or Iran. The fund does not invest in companies from terror-sponsoring countries.


Where does the fund manager invest the fund?

It depends on the type of the mutual fund and also the investment objective of the fund. For Ex: A equity diversified fund would invest in a combination of large and mid cap shares whereas a debt mutual fund would invest in bonds and other government securities whereas a gold ETF would invest in the precious metal gold


Difference between eqity fund and mutual fund?

Equity is the owners fund and mutual fund is pool money from the investor and invest in securities market. mutual fund has low risk an depends upon market condition.


Is it beneficial to invest in mutual funds?

Yes it is very beneficial to invest with mutual fund, because it is save money for your secure life.


How do you invest in mutual funds and get best mutual fund returns?

No one person could decide on the 'best' mutual funds to invest in, as different companies offer different incentives for consumers to invest into their businesses which would appeal to other types of people.


What is mutual fund how to invest in it?

mututal fund represents a vehicle for collective investments....an individual who cant invest directly in securities market cantake help of mutual fund to invest on his behalf..in nutshell it is indirect investing.....the way to invest is through a mutual fund like kotak mf/ icici mf/uti mf/ hdfc mf etc.....be informed wherever u invest and be a regular monitor of ur investments...


What mutual funds?

Mutual fund investment is actually made up of pool of funds collected from various other investors to invest stocks, money market instruments and similar assets. Mutual funds are controlled by fund managers, who invest the fund's money and attempt to produce capital profits for fund investors.