What is a Mutual Fund?

Mutual fund is a pool of money from many investors who wish to save or make money. Investing in mutual funds can be a lot easier as compared to buying and selling individual stocks or bonds on your own. Here, the funds are kept in units of Rs. 10/-

An investor can redeem his/her holdings partially or fully at any point of time and collect the proceedings on a t +2 basis.

The basic idea behind Mutual Fund is that investors lack time, the inclination and skills required to manage their own investments. Professional Mutual Fund managers are highly experienced personnels and act on behalf of the mutual fund company that manages the investments for the benefit of the investors in return of a management fees.

The organization that manages the investment is known as Asset Management Company [AMC]

In India, operations of AMC are supervised and regulated by the Securities and Exchange Board of India (SEBI).