A mutual fund is a proficient investment management fund where money come from many investors to purchase securities.
Primary advantages of mutual funds are provide a higher level of diversification, economies of scale, liquidity and managed by expert investors. And disadvantage are investors in a mutual fund must pay various fees and expenses.
What is a Mutual Fund?
A mutual fund money from numerous investors investing in a mutual fund can be a lot easier than buying and selling their individual stocks and bonds. Investments are chosen and analysis by expert’s for portfolio service including with bonds, stocks and money market instruments.
Mutual funds gives a best option to invest small amount of money, advantage of a large cash invested by shareholders, funds have gain and loss on a market basis, when similar amount they have invested in market.