Mutual Fund is a type of investment fund that pools money from multiple investors to purchase securities such as stocks, bonds, and assets. The fund is managed by a professional fund manager who invests the money on behalf of the investors in accordance with the fund’s investment objectives. The returns on the investments are distributed among the investors in proportion to their investment in the fund, minus any fees and expenses. Mutual funds are popular because they allow investors to diversify their portfolios without having to purchase individual stocks or bonds.
A mutual fund is a type of investment fund that pools money from multiple investors to purchase securities such as stocks, bonds, and other assets
There are several types of mutual funds, including:
- Equity Funds: These funds invest in stocks or equity shares of companies and are suitable for investors with a long-term investment horizon.
- Debt Funds: These funds invest in fixed-income securities like bonds, debentures, and government securities. Read More…