Advantages：
1. Portfolio investment and decentralized risk. According to expert's experience, minimum risk diversification in investment requires an investor to hold about 10 stocks at one time, which is almost impossible to handle for small investors. Securities investment funds pool in a large amount of small funds from small and medium investors to form a solid capital source, which could be used to invest in various stocks to disperse the investment risk.
2. Indirect investment. Investors indirectly invest in the securities market through purchasing trust funds.
3. Financial management by expert. Securities investment fund is managed and operated by experts or professional institutions. They are more likely to glean global economic and market information and that increases opportunities for profitable investment than personal investment.
4. Small investment with low cost. Investment in trust funds requires a lower minimum investment amount (e.g. 1,000 fund units), so investors can decide on the fund units they will buy based on their own financial ability. This solves the problem of "less money to invest; difficult entry to market" for medium and small investors.
5. Great Liquidity. Trading of trust fund is very simple. As for open-end funds, investors can purchase or redeem the funds through fund management companies or sales agents, such as banks and brokers.
Disadvantages：
Undeniably, fund also has its own drawbacks. For example, although it can spread investment and reduce risk, it cannot completely eliminate risk. Though operated by experts, the trust fund could suffer from flawed management and investment blunders committed by managers, the risk of which is commonly shared by investment and trust fund. Trust fund is a relatively stable method of investment, so there are occasions when the market is bullish, the fund is not making as much profit as certain stocks. Trust fund is more suitable for medium- and long-term investment. Short-term investors may experience increase in investment cost when they are required to pay a service fee for each buy and sell of the units in the trust fund.