Why mutual funds are considered investor-friendly?
Mihir Kadam, Pune
Mutual fund investments are considered investor-friendly because they offer flexibility; variety and diversification in investments, liquidity and in certain type of funds even tax benefits. They also offer a measured exposure to stock markets by reducing the risks associated with direct stock investments and can be a good learning ground before one can attempt direct equity investments. One can begin an investment programme with as little as Rs 500 which makes them accessible to investors of varying income levels making them extremely investor friendly. But, do remember that mutual fund investing will be beneficial only when one spends time over investment options as well in tracking the performance of the funds to benefit gainfully.
