Not everybody has the time or inclination to actively manage their investments. Fund management companies perform a number of useful tasks if you’re a hands-off investor:
They carry out all the purchases and sales, dealing with stockbrokers, taking advantage of economies of scale.
They deal with all the paperwork associated with dividends.
They take care of taxation within the portfolio.
They offer access to a diversified portfolio for a small sum of money.
In some cases, they make asset allocation choices, such as moving from shares to bonds.
They provide you with the comfort factor of being able to blame someone else if your investments head nowhere.
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Source:http://www.dummies.com/how-to/content/being-aware-of-what-fund-managers-can-do-for-you.html
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