InvestorQ : why should i consider investing in mutual funds.?
Aditi Sawant made post

why should i consider investing in mutual funds.?

Abigail Ghoshal answered.
4 years ago
Mutual fund invests in different investment options like equity, debt, gold, illiquid funds, etc. This is known as diversification, which means that if investment from one option is not giving a good return then other investments give a fair or high return, thus overall minimizing risk. Also, the investment decision is taken by a professional Fund Manager who has in-depth knowledge, skill, and ability to manage the risk of an investment portfolio.
As a common layman, not everybody has enough fund to that can be allocated in different investment avenues. Through Mutual Fund, with a small amount of money diversification is possible and thus reduced a level of risk. Additionally, the investment allocation to every fund is done by professional Fund Manager which otherwise, might be an obstacle to invest even with adequate money. Therefore, I suggest you to consider Mutual Fund to park your investment.