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What are advantages and disadvantages of mutual funds?

In: Stock Market, Mutual Funds [Edit categories]

Answer:

Advantages:

They invest in the stock markets and the stock markets are one of the best investment instruments
They are operated/maintained by a trained and experienced fund manager
The investor need not track the movement of the stock market everyday
It gives comfort and investment diversification for the investor who is not well-versed in the stock markets but still wants to invest in mutual funds

Disadvantages:

They invest in the stock market and so, if the market crashes, our investment value goes down
If the fund manager messes up then the investors money may be lost.

First answer by Anandvijayakumar. Last edit by Anandvijayakumar. Contributor trust: 782 [recommend contributor ]. Question popularity: 0 [recommend question].

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