Professionally managed: These are managed by professional fund managers who have expertise in selecting the right investment opportunities. Thus, it saves the investor’s time and effort of researching.
Diversification: An equity mutual fund invests in various types of equity shares, lowering down the risk factor that is otherwise very high in case the investor invests in the shares of a few companies.
Low cost: Since the expense ratio is regulated to be a maximum of 2.5% by SEBI, it leads to lower costs of investing.
Convenience: The investor may either invest lump sum amount or through Systematic Investment Plans (SIPs) in equity funds, as per his convenience.
Capital Appreciation: If there is an increase in the price of shares of the fund, it will lead to an increase in the invested amount, leading to capital appreciation.