Indirect investments allow individual investors to do what compared with direct investments?

Indirect investments, such as mutual funds or exchange-traded funds (ETFs), enable individual investors to access professional management services that they might not be able to afford through direct investments. When investors participate in indirect investments, their capital is pooled with that of other investors, allowing for the hiring of experienced managers who can make informed investment decisions based on their expertise and market knowledge.

This arrangement is particularly beneficial as it provides individual investors with an opportunity to leverage the skills of professionals who manage the portfolio's assets, conduct research, and make strategic allocation decisions—all of which can enhance investment performance and potentially mitigate risks. Direct investments, on the other hand, typically require investors to manage their own portfolios, which can be daunting and resource-intensive for those without the requisite knowledge or time.

In summary, indirect investments serve as a gateway for individuals to access high-quality investment management services that enhance their investment capability without the burden of directly managing individual securities.