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Why should you invest in a Mutual Fund?

Dana Keller

in Student Loans

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1 answer

Ronald Miller on October 10, 2018

When you invest in a mutual fund, you can diversify your investment which means you can buy a variety of assets without having to pay a huge amount of money. Diversification helps to reducing the risk of your investment and at the same time allows you to cover a wide range of investments. Although there are many advantages of investment funds it is important to keep costs as low as possible because most fund managers do not perform better than the market and additional costs cut the average return of 8% to 10% by 1 or even 2 percentage points.Most importantly MFs are managed by professional fund managers whose choice of buy/sell call would be better than ours (In most probabilities) Because the fund is managed by professionals with experience, we can expect the money to make good returns (provided you choose a reputed fund house with a successful fund manager)

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