If you have market information suggesting that the KSE-100 index will rise for the next few months, how will you capitalise on the opportunity? Or if you want to leverage your economics degree, and know that a saving account return of a maximum of eight per cent will fail to cover double-digit inflation, where do you turn to?
That is where Mutual Funds come in, and you can invest as low as Rs5000, whereas you need at least Rs50,000 to open up an account with a brokerage firm in most cases. Mutual Funds can give an investor better returns than commercial banks, even on small amounts.
It can help investors buy stocks when savings are not big enough to buy individual stocks, and on top of that, it helps you diversify in the stock market, which the investor in the first place could not achieve with his limited investment.
