A mutual fund is an open-end professionally managed investment fund that pools money from many investors to purchase securities. Mutual funds are “the largest proportion of equity of U.S. corporations.” Mutual fund investors may be retail or institutional in nature.
What are mutual funds?
A mutual fund is formed when capital collected from different investors is invested in company shares, stocks, or bonds. Shared by thousands of investors (including you), a mutual fund is managed collectively to earn the highest possible returns. The person driving this investment vehicle is a professional fund manager.
1.Money pooled from various individuals (investors)
2.Well-regulated (by SEBI)
3.Access to large portfolios
5.Higher returns than conventional investing
6.Allows investing in small amounts
Investing in mutual funds is the easiest means to grow your wealth. This is why the fund manager’s expertise (thereby the fund house’s reputation) is an important factor to consider. All mutual funds are registered with SEBI (Securities Exchange Board of India) and therefore, quite safe