Why are mutual funds attractive for small investors?

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Why small investors should invest in mutual funds

The safety of your investment is a key consideration when investing your hard-earned money. This holds true particularly for small investors, many of whom are increasingly turning to mutual funds. Mutual fund investments are convenient and bring high returns. And you don’t have to invest large sums either.

What are mutual funds?

Mutual funds represent a pool of money that is accumulated when many investors come together. This money is then invested in the market by a dedicated fund manager who ensures optimal returns for all investors. A mutual fund generally operates as a trust that invests in many financial securities. These include shares, debt, and money market instruments, among others. 

You will find mutual fund schemes of all kinds. They differ based on different factors such as the investor’s risk profile, investment duration, and return expectations. For instance, if you can …