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.
From India , Delhi
sanjayetcEQUITY INVESTMENT GIVE MORE RETURN.IF U DONT WANT TO INVEST MF INVEST IN SHARE HELD BY MUTUAL FUND COMPANY. LIKE UTI MUTUAL FUND PORTFOLIO HELD RELIANCE INDUSRIES LTD.U CAN BUY RELIANCE INDUSTRIES.NO INVEST IN MF INVEST IN EQUITY HELD IN MF PORTFOLIO.I AM ASLO INVESTOR AND WORKING IN BROKING HOUSE.ITS MY EXPERIENCE.
deepthiTo invest in a Stock exchange one should have: 1.More potential 2.More knowledgeable 3.More time When any one of these three is absent people go for Mutualfund.
From India , Bangalore
meet.aseem23mutual funds work on the simple principle that "diversification minimises risk".
when the investment is diversified into a portfolio of securities...it obviously takes u to the safer side.....however risk return trade off always works!!!!! more the risk ,more will be the returns!
this justfies direct stock investment..
From India , Mumbai