bnefits do mutual funds have for individual investors
It is popular investment vehicle for individual investor because individual investors have limited knowledge, time or money.
It provides assets diversification. It mixing of investments within a portfolio and is used to manage risk.
MF provide immediate benefit of instant diversification and asset allocation without the large amounts of cash needed to create individual portfolios.
MF are able to take advantage of their buying and selling size and thereby reduce transaction cost for individual investor
Smaller denominations of mutual funds provide mutual fund investors the ability to make periodic investments through monthly purchase plans while taking advantage of dollar cost averaging
the other advantage is ability to get in and out with relative ease
MF provides professional money manager. money that you invest to buy and sell stocks that he or she has carefully researched