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Mutual funds provide adequate diversification and an investor can easily use mutual funds to spread risks and keep his/her portfolio safe.
It takes time and expertise to successfully research and choose securities. Mutual fund managers can provide both, along with trading efficiency.
And because mutual funds have multiple investors, the fund manager can make large trades, which results in a cost-effective, diversified portfolio.
You can open a mutual fund account with a relatively low investment. If you choose an open-end mutual fund, you can continue investing at any point in the future. Mutual funds also offer investors liquidity so you can redeem your shares at any time.