By Harshit
October 11, 2025
A mutual fund gives you professional fund management for a small fee.
The expert manages investments by buying and selling securities, analyzing markets, and monitoring portfolios regularly.
Mutual funds enable investment diversification, reducing risk compared to holding a single security, especially during market downturns.
For example, diversifying with individual stocks requires selecting at least 10 stocks across sectors, which can be time-consuming.
Investing in a mutual fund tracking a broad index like NSE Nifty offers a diversified portfolio of around 50 stocks across various sectors.