Media is flooded with overwhelming support to Mutual Funds these days. Dont want to go into the reasons..
But, we should understand that Mutual Funds carry an equal risk as the direct investment in Equity market carry!! Returns from both mechanisms are linked directly with equity market.
More secured fund comes with lesser returns. Similarly, we can directly invest in these low return low risk bonds anyways!!
Only thing that seems for free is professional advice. But even thats not free (consider 2-3% entry exit loads!!)
A discplined person even can simulate SIP on his/her own.
MFs are better choice :
1. if you cant spare time/effort to regularly monitor the markets!!
2. Also, sometime, an individual with little money may find it difficult to diversify its small investment.
3. Tax benefits under ELSS for selected Funds
To me only above mentioned looks the valid reasons that calls for MFs.
