Mutual fund

Dear experts,

What are the prerequisites to invest in mutual fund?

Is it a better idea to invest than shares?

Thank you!

yes it's always advisable to invest in MF than shares. Though unlike shares the value of MF grows slowly for long term investment it is a good one.you also get tax benefit u set 80C on investing in tax saving MF.
there are no prerequisite. you can also invest online by choosing the MF of your choice. you will require PAN aadhar and other kyc related docs for opening MF account online

Thank you sir.

https://www.finacbooks.com/mutual-fund/what-is-mutual-fund

Thank you mam.

A mutual fund is a professionally managed investment scheme, usually run by an asset management company that brings together a group of people and invests their money in stocks, bonds and other securities. Mutual funds are pooled investment vehicles actively managed either by professional fund managers or passively tracked by an index or industry.

Benefits of investing in mutual funds -

1. Risk Diversification: One of the biggest advantage of investing in mutual funds versus stocks is risk diversification.
2. Smaller capital outlay: Investors require a large capital outlay to build a diversified portfolio of stocks but since mutual funds work on the basis of pooling of money, mutual fund investors can have the beneficial ownership of a diversified portfolio of stocks with a much smaller capital outlay.
3. Disciplined investing: Mutual funds encourage investors to invest over a long time horizon, which is essential to creating wealth. Also, systematic investment plans encourage investors to invest in a disciplined manner to meet their long term financial objectives.