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What are the advantages of Mutual Funds?

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Diversification: Mutual funds offer several benefits, but the wide-ranging nature of the investments in many mutual funds is one of the reasons for their popularity. Quite simply, diversification lowers investment risk. As a single investor with a limited number of securities, poor performance from even one security may lead to significant losses. In contrast, pooled capital from shareholders allows a fund manager to invest in varied opportunities, which in turn lowers investor risk. Additionally, the assets available within a mutual fund allow the mutual fund to invest in securities beyond the financial capability of the individual investor.
Professional Management: Theoretically, at least, this is another selling point for mutual funds. As an individual investor, you may not have the time or inclination to properly investigate securities in which you�re interested. The manager of a mutual fund, however, exists precisely for that purpose. A good mutual fund manager possesses the training and time to invest your money wisely, while simultaneously relieving you of the stress associated with the decision-making process.
Asset Access: In many cases mutual funds offer an ease of access not available in many other types of investments. Since mutual funds are available each business day, it is relatively easy to access your shares whenever you wish
Low Minimum Investment: Mutual funds are very easy to find, and many mutual funds offer initial investment minimums of only $100.00. That buy-in is in sharp contrast with the initial investment required for a hedge fund, for example, which may cost as much as $1,000,000.00.

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