Mutual funds pool money from multiple investors to invest in a diversified portfolio of securities, such as stocks, bonds, or other assets. Managed by professional portfolio managers, they are a popular choice for individual investors due to their simplicity, diversification, and accessibility.
Diversification: Mutual funds invest in a wide range of securities, reducing the risk associated with individual investments.
Professional Management: They are managed by experts who make decisions about buying and selling securities.
Liquidity: Investors can buy or sell shares on any business day at the current net asset value (NAV).
Affordability: Mutual funds typically allow small initial investments and subsequent contributions.
Variety: They offer options across asset classes, industries, and geographical regions, enabling investors to align with their goals and risk tolerance.