. International Funds: They invest in the markets of other nations and give exposure to the global market. It is one of the popular ones for investment in abroad.
NO economies of scale available
Advantages of Mutual Fund Investment
There are numerous reasons why investors prefer mutual fund investment. Here are some advantages:
Economy of scale is not available
1. Diversification: A Mutual fund provides an instantaneous form of diversification as it invests in a portfolio of stocks, bonds, or other assets, thus keeping the risk of a poor performance of any single investment relatively low since losses on one asset may offset gains on another. Diversification is highly important for managing the risks in any investment portfolio.