Mutual funds have long been a popular investment option for those looking to grow their wealth while minimising risk. At their core, mutual funds pool money from multiple investors to invest in a diversified portfolio of securities such as stocks, bonds, and other assets. This structure allows individuals to access professional management and greater diversification than they might achieve on their own. However, like any investment, mutual funds come with both advantages and disadvantages that every potential investor should carefully consider.

What Are Mutual Funds?

A mutual fund is a type of investment vehicle where funds from many investors are pooled together and managed by a professional fund manager. This manager uses the combined capital to invest in a wide range of securities, depending on the fund’s strategy. The primary benefit of this arrangement is that individual investors gain exposure to a diversified portfolio without needing a large amount of …