Lock-in Period –
This period generally differs for each mutual fund. Right from a month to nothing at all. Longer your holding period better will be the returns and vice versa.
Expert Money Management –
A single investors might not have time and professional expertise to choose which is the best mutual fund to invest or how. The mutual fund company hires professional managers who can manage this money pooled in the funds.
SIP Option –
Suppose you don’t want to make one-time investment, invest in the smaller and the manageable installments SIP. The Systematic Investment Plans or SIP promotes financial discipline among the investors.
Low Cost –
The mutual funds are quite affordable investment choice for the people who don’t have want to make the big initial investment. The fund houses will charge a very nominal fee, known as expense ratio. It ranges from 0.5% – 1.5%, and can’t exceed to above 2.5% according to SEBI regulations.