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Advantages:

  1. They invest in the stock markets and the stock markets are one of the best investment instruments
  2. They are operated/maintained by a trained and experienced fund manager
  3. The investor need not track the movement of the stock market everyday
  4. It gives comfort and investment diversification for the investor who is not well-versed in the stock markets but still wants to invest in mutual funds

Disadvantages:

  1. They invest in the Stock Market and so, if the market crashes, our investment value goes down
  2. If the fund manager messes up then the investors money may be lost.
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14y ago

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