| Re: Why do investors go to MUtual funds Dear Deepthi,
Usually the investment made in mutual fund is managed by people called fund Manager. then there are financial analyst . So it is managed by a group of expert. Moreover, if u look at the corpus , it's quite a big amount & they can change the mood of the market & usually they have diversified portfolio. U might have noticed that the day when the M.F. & other institutions sell or buys the sensitive index also moves accordingly. So, people with no idea or very little idea or one who has little time to study the market trends usually invest in M.F.
i fully agree with u that return in M.F. is far less than shares, but before investing in any particular co. , one has to look into the finer details, the financial fig. are of utmost importance. But mostly people doesn't understand the financial ratios & they go in for M.F.
Regards
Ram |