Mutual Funds are one of the best investment options available to common investors. Most of the people don’t have the required know how to do detailed analysis on any stock to pick it. Moreover, it’s also not practical for small investors to take out time from their busy schedules to do detailed research on stock selection. Many investors stay away from stock markets for these reasons.
However, equities had been one of the most rewarding investments in the last many years and their importance have further increased by falling interest rate scenario. Band fixed deposits are not enough to even beat the inflation. Rather than staying away from equity markets, investors should go ahead with diversified mutual funds managed by experts. They don’t need to worry about stock selection and regular monitoring as it’s taken care by fund managers.
Mutual funds should definitely be part of one’s portfolio.