In India, mutual funds have been available in the market for more than two decades. They have gained popularity as investment vehicles because of their simplicity, and their numerous other benefits like diversification, economies of scale, divisibility, liquidity and professional management. They are especially suited for small investors with limited knowledge, time or money. Mutual funds allow regular investors to diversify their portfolios, which is not possible when they invest directly in stock or bond markets. Today there are numerous mutual fund companies in India which offer various investment options like equity mutual funds, fixed income, gold, international funds and fund of funds.
