Disadvantages of Mutual Funds

  • Risks and Costs : Changing market conditions can create fluctuations in the value of a mutual fund investment. Also there are fees and expenses associated with investing in mutual funds that do not usually occur when purchasing individual securities directly.
  • No Guarantees : As Mutual funds invest in debt as well equities , there are no sure returns . Returns depends on the market conditions.
  • No Control : Investor does not have control on investment , all the decisions are taken by the fund manager. Investor can just join or leave the show.
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