Professional Management - One of the main attractions of mutual funds is that it affords its investors, particularly the small ones, the servicfes of full time investment managers whose jobs is to analyze and select investment products which would give the best possible returns to teh fund and shareholders.
Low Capital Requirement - A key advantage of mutual funds is they offer investors access to professional money management for a relatively low minimum investment.
Diversification - Mutual funds are invested in a wide array of securities that can lower overall risk without necessarily reducing returns.
Liquidity - Mutual fund shares can be redeemed at anytime based on the prevailing Net Asset value Per Share.
Safety - Mutual funds are registered with and highly regulated by the SEC. It functions within strict regulations design to protect the interest of the investors.
Potentially Higher Returns - Because a mutual fund is managed as a single portfolio, it is able to take advantage of cetain economics of scale and has access to investments with higher returns.
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