Why Mutual Funds?

Professional Management
One of the main benefits of mutual funds is that an investor avails services of experienced and skilled professionals. The funds invested are managed by experienced fund managers. A good investment manager is certainly worth the fees you will pay. They are backed by dedicated investment research team which analyses the performance and prospects of companies and invests accordingly to give maximum benefit to the investors. It’s very difficult for any individual to do research on any company before buy the shares of that company. It requires lot of hard work, time and patience.
Diversification
Mutual fund invests across many sectors and industries. This diversification reduces the risk because hardly all stocks decline at the same time. You can achieve this diversification through Mutual Fund with far less money than you can do on your own. By pooling your funds with others, you can quickly benefit from greater diversification. Mutual funds invest in a broad range of securities. This limits investment risk by reducing the effect of a possible decline in the value of any one security.
Low Cost
Mutual Funds are a relatively less expensive way to invest compared to directly investing in the capital markets.
Good Returns
Over a medium to long term Mutual Funds have the potential to give good returns as they diversify over a number of securities.
Convenience and Liquidity
In open ended schemes you can conveniently withdraw partially or fully at any time though this practice should be strictly avoided. Thus the liquidity is very high in Mutual Funds.
Transparency
Regular information can be obtained any time from the Mutual Fund house. The information can be of any kind like the actual value of your investments, the companies in which you money has been invested, the proportion invested in each asset class etc.
Well Regulated
All Mutual Funds are registered with SEBI (Securities and Exchange Board of India) and they act according to the strict regulations to protect the interests of investors. The working of Mutual Funds is regularly monitored by SEBI.