Diversification: One of the primary advantages of mutual funds is
diversification. By investing in a variety of assets, mutual funds spread
the risk associated with individual securities. This helps reduce the impact
of poor performance from any single investment on the overall portfolio.
Professional Management: Mutual funds are managed by professional
fund managers who make investment decisions on behalf of the investors.
These managers conduct research, analyze market trends, and aim to maximize
returns within the fund's investment objectives.
Regulation: Mutual funds are regulated by the Securities and Exchange
Board of India (SEBI) in India and the Securities and Exchange Commission
(SEC) in the United States, among other regulatory bodies globally.