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What features of mutual funds and the investment environment have led to mutual funds rapid growth...

What features of mutual funds and the investment environment have led to mutual funds rapid growth in the last two decades?
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Answer #1

The features are listed as follows:

  • Mutual Funds are an indirect investment into markets. Thus, the common person can invest easily. The risk is professionally managed.
  • Mutual Funds offer a variety of schemes as per the requirements of the person. Enhanced flexibility has increased investor participation.
  • Companies have provided a conducive investment environment by making people aware of these investment opportunities.
  • Cost of investing in mutual funds is low, which has prompted investors to invest more.
  • Mutual Funds offer liquidity to investors too. They can diversify their portfolio by investing in different products.
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