A mutual fund, by its very nature, is diversified — its assets are invested in many different securities. Beyond that, there are many different types of mutual funds with different objectives and levels of growth potential, furthering your chances to diversify.
How do managed funds work?
Managed funds invest in a variety of asset classes including shares (Indian and international), fixed interest, property and cash. Each investor purchases units in the fund. The value of these units is calculated daily and changes as the market value of the assets in the fund rises and falls.
Why invest in Mutual Funds?
Investing in mutual has various benefits which makes it an ideal investment avenue. Following are some of the primary benefits.
Professional investment management
Convenience and Flexibility