👉 Mutual funds offer diversification, professional management, and lower risk compared to directly investing in individual stocks, especially for those who don’t have time or expertise or lack inclination.
No, mutual fund investments are subject to market risk. Past performance does not gurantee future returns. Investor must assess their risk profile and consult a professional before investing.
? No hidden fees. MFDs earn trail commission transparently through the expense ratio of mutual fund schemes, which is regulated by SEBI and clearly disclosed.
? MFDs earn a small percentage as trail commission from the mutual fund company — there is no direct cost to the investor. This helps ensure continued service, guidance and relationship management.