People always take mutual funds as investment commodity which is a collection of funds from different investors. But instead mutual funds are the collection of different types of investment instruments like stocks, bonds, and funds which are maintained by different Fund managers. They comprise of liquid commodities, transfer of money, unit purchasing and high competition like features. Investing in mutual funds is highly liquid as a lot of direct fund transfer takes place in order to redeem shares on daily basis. Mutual funds can be purchased directly or through stock brokers or other investment expert.
Mutual Funds are often considered easy as it facilitates easy access to the portfolios of different investors, and helps the investor to easily diversify amongst different sectors in order to minimize the risk profile to the portfolio. The low cost of transaction due to effectively distribution of expenses amongst the investors make it quite cost effective and the fund managers makes the task more convenient with their indulgence, overall they become quite convenient for the investor, which makes them a good investment commodity.