Following are the advantages of Mutual Funds:

• Affordability 

A mutual fund invests in complete asset portfolio, i.e. shares or bonds etc. which depends upon objective of the scheme. An investor shall buy in group of equities or else it would be very expensive. Each unit holder gets exposure to the portfolios with a minimum investment of Rs. 500. This investment can get you not more than quarter of Infosys share. It will be affordable for any investor to build portfolio with mutual funds other than investing directly in stocks.

• Diversification

It just means that you have to increase your savings across different segments (bonds, real estate, stocks, money market instruments etc.) and diverse sectors (textile, auto, IT ). This type of diversification would put in to steadiness of returns, for e.g. throughout one period, equities may underperform although money market instruments and bonds may do good enough to balance the result of a slouch in equities. Likewise, IT may perform badly however the other sectors like auto & textile sectors may do well and may defend the principal amount and might help you to achieve returns.

• Variety

Mutual funds give tremendous type of schemes. This is beneficial in two ways, i.e. it give diverse types of schemes to investors with diverse desires and risk appetites; other than this, it gives an opportunity to investor to put in funds across different schemes, both equity and debt. For e.g., an investor can put his funds in equity scheme and debt scheme which depends on the risk appetite and creates a portfolio easily or can simply buy the balanced scheme.

• Professional Management 

Skilled investment professional that is looking to increase returns and decrease risk associated with investor's fund. When you buy mutual funds, you are handling your funds to the professional investment that experiences to make investment decisions. It would a manager’s job to

• Find the top securities for the particular mutual fund, given the fund’s declared investment goals
• Tracking investments and %age change in markets that adjust the mix of collection, when required