Allocating funds to a mutual investment is like an investment produced by a collective. An individual as a single investor is likely to have lesser total financial value at disposal than say, A collection of friends put let s, Together. Now assume that this group of individuals is a novice in investing and so the group turns over the pooled funds to an expert to produce their money work for them. This is what a professional Wealth management organization does for mutual funds. The amc invests the investors money on their behalf into various assets towards a common investment objective. An investment vehicle known as a mutual An investment fund serves as a vehicle that enables a collective group of individuals to gather their excess funds and collaborate on investments in assets or instruments for a mutual purpose investment objective. Optimize the skills and background of a fund manager, A proficiency that they may lack individually havebenefit from the economies of scale which size enables and should not be considered available on an individual basiswhy one should invest in pooled asset funds?reason 1 they are investments instruments which are capable of giving high returns . An average mutual fund scheme returns easily beats inflation in longer run and a good scheme can give far superior returns. Reason 2 our mutual fund industry stands out as a leading choice regulated industry around the Earth. They are overseen by the strict guidelines layed down by sebi securities & exchange committee of india . Reason 3 investments decision of a collective investment scheme is taken by their amcs and fund managers. They are experts who make investments decisions after doing intensive research and analysis associated with a firm & industry. Individuals generally do not possess time and resources to do research hence best option is to let mf manage your investments reason 4 this industry is highly liquid. Even more liquid than stock markets. Payments are generally made through cheques or in particular cases cases they are directly assigned to your bank accounts, If your bank is allowing rtgs & electronic clearing and mutual fund amc is providing such facility.