a financial intermediary that allows a group of investors
to pool their money together
a predetermined investment objective. The Mutual
will have a fund
manager who is responsible for investing the
pooled money into specific securities (usually stocks
or bonds). When you invest in a Mutual
shares (or portions) of the mutual fund and become a
shareholder of the fund.
A Mutual Fund
is a trust that pools the savings of a
number of investors who share a common financial goal.
thus collected is then invested in capital market instruments
such as shares, debentures and other securities. The
income earned through these investments and the capital
realised are shared by its unit holders in proportion
to the number of units owned by them. Thus a Mutual
the most suitable investment for the common man as it
offers an opportunity to invest in a diversified, professionally
managed basket of securities at a relatively low cost.