For a small fee, the investor gains from the stock-picking ability of the professional fund manager, does not have to track his portfolio and also benefits from tax exemption of portfolio gains.
Did you know that in India, individual investors hold more stocks than they have mutual funds? Only about 4.5% of the total market capitalization in India is held through equity funds, whereas direct holding by individuals is nearly 22% of the market capitalization.
Source: economictimes
