What are mutual funds ?

  • MF is a scheme in which several people invest their money for a common financial goal.
  • Mutual funds are a type of investment that takes money from many investors and uses it to make investments based on a stated investment objective.
  • The collected money may be invested in debt market, equity market or money market depending upon the objective of the fund.
  • Each shareholder in the mutual fund participates proportionally (based upon the number of shares owned) in the gain or loss of the fund.
  • In short, Mutual funds are institutions that collect money from several sources – individuals or institutions by issuing units, invest them on behalf with predetermined investment objective and manage the same for a fee

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