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.
Past performance is obtainable from public records .
Financial advisors, mutual fund data services, the fund companies and the newspapers all record and offer reports of the performance of mutual funds. Efficiently re-invest dividends . If you individually own stocks, you might find reinvesting small dividend payments inefficient or impractical after commissions. However, a mutual fund will easily reinvest all your dividends automatically, which can add nicely to your future profits. Automatic withdrawal plans .