What's the benefit of mutual fund?

There are actually a couple of benefits.

First and perhaps most important is that they allow a small investor to buy a diverse portfolio of stocks with a small investment.

Second, they can allow an investor to invest in portions of the stock market in which that person may not have as good resources as a mutual fund company. For example small cap stocks.

Third, it is a relatively easy way to make periodic investments on a regular basis like $50 a month for example or $200 a year.

Fourth, by investing in mutual funds with different investment objectives one can achieve broad diversity and reduce specific risk and increase overall return. Again with a relatively small investment.

n mutual funds our investments are managed by a group of professionals, they keep a close watch on the market and follow the market trend all the time. Then according to our choice we can ask them to go for a balanced fund , where the risk factors are low.It is difficult for an individual to keep track of the market and the different business houses , investing through mutual funds,we cut down our work and yet can earn good returns with proper guidance of the fund houses.

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which mutual fund , whether it is equity linked savings scheme or normal mutual fund.

Professional Management
Diversification(Maximum Return at Low Risk)
Liquidity
Flexibility

You can choose any funds according to ur objective like
Risk Averse (Low return)- Liquid funds
Moderate risk (Moderate return)- - Balanced funds
High risk (high return)- - Index/sector funds

Example:
You deposit $100.00 in your bank account.
A year later you have $105.00

You deposit $100.00 in your Mutual Fund.
A year later you have $120.00

I cannot explain it any simpler.