Mutual Fund

What is Mutual Funds...

Before going to purchases Mutual Funds, you should know the basics of Mutual Funds.

Concepts of Mutual Funds

Mutual Funds is a Vehicle(tools) to mobilize money from investors, to invest in different markets and securities, in line with the investment objectives agreed upon, between the mutual funds and the investors.

In other words, through investment in a mutual funds, an investor can get access to markets that otherwise be unavailable to them and avail of the professional fund management services offered by an asset management company.

Role of Mutual Funds

If you invest money in mutual fund than it is important to know the role of mutual funds.

Mutual Funds perform different roles for the different constituents that participate in it. Their primary role is to assist investors in earning an income or building their wealth, by participating in the opportunities available in various securities and markets. It is possible for mutual funds to structure a scheme for different kinds of investment objectives. Thus, the mutual fund structure, through its various schemes, makes it possible to tap a large corpus of money from investors with diverse goals/ objectives.

Mutual Funds Schemes

Mutual Funds seek to mobilize money from all possible investors. Various investors have different investment preferences and needs. In order to accommodate these preference, mutual funds mobilize different pools of money. Each such pool of money is called a mutual fund scheme.

Every scheme has a pre- announced investment objective. Investors invest in a mutual fund scheme whose investment objective reflects their own needs and preference.

Advantages of Mutual Funds got Investors


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