InvestorQ : i am new to mutual funds. pla let me know the pros and cons.
Madhu made post

i am new to mutual funds. pla let me know the pros and cons.

Answer
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tanvi Patel answered.
1 year ago


Mutual fund collects money from small investors, mostly retail investors and professional fund manager create fund to invest that amount in the market. This fund is infused in different stocks, securities, and bonds on behalf of the investor. This investment in different asset is known as diversification. Diversification helps to minimize the risk and get a good return.
Mutual funds are popular to be known as a safe option in India. Its main aim is to minimize risk by diversification of investment.

To list down your query in a direct manner;
Pros:
Convenience
Diversification
Liquidity
Reinvestment of Income
Investment Options
Cheap investment
Professional management
Investment size .

Cons:
Fees
Capital gains
Phantom gains
Cash Drag.

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