Pooling Resources for Diversified Investments: The Rise of Mutual Funds
The article discusses how individual investors can reduce the risk of investing by pooling their resources in mutual funds. Mutual fund companies invest in a variety of securities like stocks and bonds, providing expertise and diversification to investors. This allows people with limited financial knowledge to easily invest with low initial costs and the flexibility to enter or exit at any time. Mutual funds are becoming more popular in India as a way for investors to grow their capital without needing to personally manage a diversified portfolio.