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Bonanza Finmart
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| What is Mutual Funds? |
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Your results on : Mutual Fund | What is Mutual Funds? |
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A Mutual Fund is a trust that pools together the savings of a number of investors who share a common financial goal. The collected money is then invested in capital market instruments such as shares, debentures and other securities. Each mutual fund has a pre-defined objective, so you can choose a fund that is more suitable to your requirements.
The income earned through these investments and the capital appreciation realized is shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most appropriate investment option for the common man as it offers an opportunity to invest in a diversified and professionally managed basket of securities at a relatively low cost.
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Flow chart describing working of Mutual Fund
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