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Mutual funds are an effective investment tool in the stock market. While investing in a Mutual Funds, many people pool their money together and an expert invests for them charging a small fee.
Mutual Fund brings in the benefits of diversification and money management to the individual investor, providing an opportunity for financial success that was once available only to a select few.
For the individual investor, Mutual Funds provide the benefit of having someone else manage your investments and diversify your money over many different securities that may not be available or affordable to you otherwise. Today, minimum investment requirements on many funds are low enough so that even the smallest investor can get started in Mutual Funds.