The awareness to invest in stocks /equity is increasing and abundant information is available on internet and also through Artificial Intelligence. Available information can be used by some investors wisely but it is affected by emotions of investors.
In Investing you would like to put your money to work efficiently so that it compounds into greater wealth over time.
As an investor, you have two choices to make:
1. Do it yourself- select and manage individual stocks yourself
2. Delegate the job to professional fund managers through mutual funds.
The attraction of managing your own portfolio is that you save the management fee and retain complete control over your investments. Professional investment management is about carefully selecting stocks. It involves research, portfolio construction, risk management, execution and very important behavioural discipline.
In case of most retail investors, doing it yourself after careful analysis and research along with their full time jobs or business may not be the most efficient use of their time or money.
Professionally managed mutual funds offer them a more efficient way to build long-term wealth than investing in individual stocks themselves.
Fund managers in Mutual Funds have teams of analysts tracking different sectors, competitors, business cycles, regulation, accounting practices and management quality.