26 Apr 2010, 11:15
Question:what is mutual fund what is advantage of to opening a mutual fund account
26 Apr 2010, 11:44
Dr. David Costa's reply:Hello and thanks for your questions. There are plenty of online resources explaining what is a mutual fund so I would not get deeper into this point. Among the benefits of opening a mutual fund account is the opportunity to participate in a pool of investments managed by professionals and hence having a diversified and (hopefully) well managed portfolio even with a small amount of money. Additionally, by making regular investments in a mutual fund (e.g. monthly) you benefit from a cost per unit averaging set to provide you with long term benefits vs. focusing on daily trading and more risky strategies.
I see that you are from India so perhaps you should pay a visit to
http://www.morningstar.co.in/ for several articles and resources related to mutual funds.