Question

What are the expected benefits of a mutual fund
or how does it potentially earn money?

Answer 1

mutual funds provide a mitigation of risk by providing a cover of diversified investments in many industries.Thus there is am=n advantage of not being effected by a slump in one particular industry. Also there is an advantage that many of ther high priced shares are not approachable by comman man...thus a mutual fund which gathers the amount from many can afford those shares and reap good profits....