One of the primary reasons to consider mutual funds is the benefit of diversification. By investing in a mutual fund, you gain exposure to a wide range of assets, which helps spread out your risk. This diversification helps mitigate the impact of market volatility on your investments.

Additionally, mutual funds offer the advantage of professional management. Fund managers conduct in-depth research and analysis to make informed investment decisions, which can potentially lead to higher returns compared to individual stock picking.

Moreover, mutual funds are affordable and accessible to all investors, regardless of their financial status. With mutual funds, you can start investing with as little as Rs 500 or even less through Systematic Investment Plans (SIPs), making it an ideal investment option for young individuals who are just starting to build their investment portfolio.