A mutual fund is a professionally-managed investment scheme. It uses money from many investors to invest in stock, bonds and other types of securities. The mutual fund is usually run by an asset management company that brings together a group of people who would like to invest money for substantial growth in future. There is a fund manager, who decides how to incorporate the money of the investors in different stocks. The mutual funds are generally ‘open-ended’, which means that new investors can join the fund at any point in time. There are thousands of different kinds of mutual funds based on different types of business and investment style floated in India. All mutual funds are registered with SEBI. There are strict rules and regulations formulated to protect the interest of the investor in mutual funds.
Investing in mutual funds is considered a good move if you want to make … Read more