Mutual funds are investment vehicles, which pool together all the money from investors and invest in different asset classes such as equity, fixed income etc. Now days everybody wants to invest in capital market in order to attain higher returns. Mutual funds invest in capital markets on behalf of investors. Since the time mutual funds have come in, hey have caught the fancy of investors in a big way.
Following are the reasons for investing in mutual funds:
No time or market knowledge:
Equity markets are volatile and investment in it requires lot of time and effort on the part of investors. Also one needs to study the companies in detail before investing. Most of the retail investors either do not have the time or the expertise for this. Mutual funds are managed by fund manager who are experts in their field, so be rest assured that your investments are taken care of by the professionals.