What is a Mutual Fund? Explained
What is a Mutual Fund? Everything you need to know
A mutual fund is an investment method, which pools money from investors with common investment objectives.
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It then invests its money in multiple assets, in accordance with the stated objective of the scheme.
The investments are made by an ‘asset management company or AMC. The money pooled in by a large number of people (or investors) is what makes up a Mutual Fund.
This fund is managed by a professional fund manager. It is a trust that collects money from a number of investors who share a common investment objective.
Then, it invests the money in equities, bonds, money market instruments, and/or other securities. Each investor owns units, which represent a portion of the holdings of the fund.
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