Mutual Funds For Whom Who Do Not Knowledge at Stock Market

 Mutual funds for whom

 Mutual funds can survive and thrive only if they can live up to the hopes and trust of their individual members these hopes and trust echo the peculiarities which support the emergence and growth of such institutions irrespective of the nature of economy where these are to operate Mutual funds come to the rescue of those people who do not excel at stock market due to certain mistakes they commit which can be minimized with mutual funds such mistake can be viz. lack of sound investment strategies, unreasonable expectations of making money, untimely decisions of investment and disinvestment, acting on advice given by others, putting all their eggs in one basket i.e. failure to diversity Mutual funds come to the rescue of such investors who face followings problems while making direct investments

 

• Limited resources in the hands of investors quite often take them away from stock market transactions
• Lack of funds forbids investors to have a balanced and diversified portfolio
• Lack of professional knowledge associated with investments business enables investors to operate gainfully in the market Small investors can hardly afford to have expensive investment consultations
• To buy shares, investors have to engage share brokers who are the members of the stock exchange and have to pay their brokerage
• They hardly have access to price sensitive information in time
• It is difficult for him to know the developments taking place in share market and corporate sector
• Firm allotments are not possible for small investors when there is a trend of over subscription to public issues