The roots of the mutual fund industry go back to 19th century Great Britain. The Foreign and Colonial Government Trust of London, in 1868, offered advantages similar to our present-day funds. Early in this century, the modern mutual fund industry re-pioneered the British idea of pooling the capital of many individual investors to purchase securities such as stocks and bonds from many different companies. Most investors who invest in stocks and bonds on their own, live with a bit of anxiety. Ease of investing .
Automation can beat procrastination.
New investment capital can be added to a mutual fund . Simplicity of transaction . Fund units can be purchased or sold easily, offering a liquid form of investment and assuring ready access to capital in the case of an emergency. Immediate Diversification . This provides wider diversification, limiting the potential for loss.