For less experienced investors, picking the right stocks to gain interest is a huge challenge since you need time, effort and technical knowledge. Therefore, investing in fund is very suitable for busy people since every investment practice is conducted by a team of professional fund managers who have more advantages in terms of qualification, experience, information and practice.
Suitable for different investment objectives
No matter how large or small your target is, there are many type of funds created to meet the specific demand from investors i.e equity fund, fixed income fund, money market funds, ETF, etc.
Flexibility and liquidity
Investing in fund also has more advantages than other channels i.e real estate , gold since investors can convert fund certificate to money whenever they want. They can do so by either sell the fund certificates to other investors or to the fund itself if that is open-end fund.
Transparency
The investment fund management company is strictly managed by different regulations and framework to avoid conflict with investor’s benefit. Therefore, transparency is a Must for all investment fund company.
Professional asset management
Investors’ assets are managed by financial experts from the fund who are required to meet professional and obligatory standard, experience, qualification and work ethics of the industry.
Reduce risk
Investing in fund can help reduce risk than investing directly to stocks since your asset will be allocated across portfolio plus it is managed and supervised by a professional team of research, risk management, investment experts behind.