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What is Mutual Fund

 








" Mutual Fund might seems to be complicated as well as intimidating. In simple we can say that mutual fund is a large pool of money put in by a large number of investors and this funds are managed by a professional person known as fund manager".

                    "It is a trust that collects money from a number of investors who share a common objective and then invests the money in various categories such as equities, bonds, money market instruments and other securities."

"Here the investors own units which represents there holdings of the fund and the income/gains or losses are distributed proportionately among the investors after deducting certain expenses by calculating a scheme's Net Asset Value". A Mutual Fund is one of the most viable investment options for a common man who are willing to take a small amount of risk in the process of there wealth creation as it offer an opportunity to invest in diversified and professionally managed funds at a minimal cost. Here investors has the option to invest depending on there risk appetite, age group, income and various other parameters.





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