. Cost-effectiveness: Since the initial requirement is considered a very minimal investment in most cases, mutual funds are accessible to all types of investors. As SIPs allow investing small amounts on a regular basis, mutual funds are inexpensive to those belonging to different income classes.
5. Tax Benefits: There exist mutual funds which have tax deduction benefits like ELSS in certain countries, where there is a lock-in period for the funds, but they provide excellent opportunities for saving taxes with investment in the equity market.
6. Transparency and Regulation: Investments are regulated by state institutions like SEBI in India or SEC in United States. They should issue portfolio holdings, fund performance, fees, and other important end