Reasons to Invest in Mutual Funds

Mutual fund is a pool of money. It is managed by a professional investor. People purchase mutual funds because of diversification, professional management and convenience. Here are few reasons why people invest in mutual funds:

1. New/more types of funds

2. Few or no sales charges

3. Some performed better than common stock

4. Widespread marketing

5. Selection is easier

6. Dispense profits to investors

7. Investors expect dividend income

8. Investors expect price appreciation

9. Affordability

10. Professional Management

11. Transparency

12. Liquidity

 

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