what's the benefit of mutual fund?

Answer 1

There are actually a couple of benefits.

First and perhaps most important is that they allow a small investor to buy a diverse portfolio of stocks with a small investment.

Second, they can allow an investor to invest in portions of the stock market in which that person may not have as good resources as a mutual fund company. For example small cap stocks.

Third, it is a relatively easy way to make periodic investments on a regular basis like $50 a month for example or $200 a year.

Fourth, by investing in mutual funds with different investment objectives one can achieve broad diversity and reduce specific risk and increase overall return. Again with a relatively small investment.

Answer 2

n mutual funds our investments are managed by a group of professionals, they keep a close watch on the market and follow the market trend all the time. Then according to our choice we can ask them to go for a balanced fund , where the risk factors are low.It is difficult for an individual to keep track of the market and the different business houses , investing through mutual funds,we cut down our work and yet can earn good returns with proper guidance of the fund houses.

Answer 3

Professional Management
Diversification(Maximum Return at Low Risk)
Liquidity
Flexibility

You can choose any funds according to ur objective like
Risk Averse (Low return)- Liquid funds
Moderate risk (Moderate return)- - Balanced funds
High risk (high return)- - Index/sector funds

Answer 4

which mutual fund , whether it is equity linked savings scheme or normal mutual fund.

Answer 5

Up date yourself on moneycontrol.com

Answer 6

Example:
You deposit $100.00 in your bank account.
A year later you have $105.00

You deposit $100.00 in your Mutual Fund.
A year later you have $120.00

I cannot explain it any simpler.