Mutual Funds are pools of money collected from many investors for the purpose of investing in stocks, bonds, or other securities. Mutual funds are owned by a group of investors and managed by professionals. In other words, a mutual fund is a collection of securities owned by a group of investors and managed by a fund manager.
When you purchase a mutual fund, you are pooling money with other investors. The money pooled together by you and other investors are managed by a fund manager who invests in financial assets such as stocks, bonds, etc. The mutual fund is managed on a daily basis. Below is a diagram of how mutual funds work:
Investing in mutual funds is like hiring an affordable personal chef. Someone else is responsible for your meal planning and for all that legwork. But you still need to make sure you’re being served a healthy diet (and not being overcharged).
A mutual fund is an investment option that pools the money of many investors to buy stocks, bonds, and other securities. A mutual fund portfolio is professionally managed, comparatively affordable, and is subject to strong oversight and regulation. Most mutual funds invest in stocks, bonds, or a mix of the two.
Both fixed deposits and
investment bonds involve
a certain amount of money
for a specified period.
An exchange-traded fund
(ETF) is a type of pooled
investment security
operates much like MF
customers can pledge
their fixed deposit as security
and get a loan
National Pension System
(NPS) is a retirement
-oriented investment option
A MF is a type of
financial vehicle
made up of a pool
of money collected
from many investors
PMS stands for Portfolio
Management Service.