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Mutual funds have gained popularity due to various factors. Firstly, they offer diversification by investing in a range of assets, reducing risk. Secondly, professional fund managers handle investment decisions, utilizing their expertise to potentially generate higher returns. Mutual funds are easily accessible, with lower minimum investment requirements and affordability, making them accessible to a broader range of investors. They also provide liquidity, allowing investors to buy or sell shares at the fund's net asset value. Transparency is ensured through regular disclosure of holdings and performance. Moreover, mutual funds offer tax efficiency and a wide range of options to suit different investment goals. However, investors should carefully consider their objectives, risk tolerance, and fees before investing. Seeking advice from a financial advisor is recommended to make informed decisions.
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