Why buy mutual funds online or through an adviser
Professional management Mutual fund investments give investors access to professional management for their funds. Professional management has many advantages like a clear investment objective, investment based research and prudent investment processes etc. This is one of the many advantages to buy mutual funds online or via an advisor. Affordable portfolio diversification Diversification helps reduce the risk of a portfolio and hence gives better risk adjusted returns. Even a small investment, say of Rs 500, gives investor’s ownership of a portion of a diversified investment portfolio. Economics of scale Pool of investors together results in large sums of money which gets investors access to professional managers to manage their funds which individual investors cannot do. Along with the higher transaction volume, mutual fund investors get to negotiate better terms with brokers, bankers and other service providers. This is a distinct economic advantage to an in...