Why is mutual funds growing popular?


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Growing Popularity of Mutual Funds : The popularity of mutual funds is fast growing in
India. The number of such funds is increasing and are getting popular support from the
investing class. Investors prefer to give their savings to mutual funds for the safety of their
funds and also for securing the benefits of diversified investment. These funds take
appropriate investment decisions and handover the benefits of profitable investment to the
investors.
Mutual funds are also popular as they have introduced various open-ended schemes in
order to offer convenience to all categories of investors. The professional management of
mutual funds is also one important reason of their popularity. Small investors do not have
substantial amount to invest, sufficient time to study various avenues available for
investment and finally necessary knowledge, experience and skills to find out the most
secured and profitable avenue for investment. However, these problems can be solved by
investing money in the mutual funds. The mutual funds relieve the investors from the entire
botheration about secured and profitable investment and also offer the benefits of secured
and diversified investment to the investors. In this sense, mutual fund acts as a boon to
investors in general and small investors in particular.


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