The biggest advantage of investing through a mutual fund is that it gives small investors access to professionally-managed, diversified portfolios of equities, bonds and other securities, which would be quite difficult to create with a small amount of capital.

Mutual Funds hold plenty of securities, like stocks and bonds, under its purview to enable an investor to diversify their investment risk. Relatively simple to understand, Mutual Funds are a safe investment option because SEBI regulates it.

 

In case of an unpleasant economic event, dividing your savings into something as low as even one or two funds will defend your money against a financial crisis. And if the value of your stock falls and the value of your bonds rises, it offsets losses that could otherwise wipe out an entire portfolio in financially tumultuous situations. Since Mutual Funds have a broad market exposure, they are the most advisable investment option for young investors.