11 March 2016
Do you want to invest your money but don’t know how to go about it or simply don't have the time to spend on your investments?
If so, mutual funds are for you. With mutual funds, you have the facility of letting professional fund managers make investments on your behalf.
At a nominal cost, you can have your investments professionally managed in a mutual fund.The formal definition of a mutual fund is, “Mutual fund is a collective investment mechanism that pools resources of many investors, issues them units and invests on their behalf.”
The mutual fund invests the collected funds in securities in accordance with the investment objective as disclosed in the Scheme Information Document of the scheme.
Usually, a large number of investors invest in a mutual fund scheme. Investment gains or losses made by the scheme are shared among the investors in proportion to their investments after paying for the incidental expenses and fees.
You may learn all about mutual funds as in below link choosing faq question
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